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<DOC> FEDERAL COMMUNICATIONS COMMISSION (FCC) ___________________________________________________________ FINAL RULE STAGE ___________________________________________________________ 202. TELEPHONE COMPANY/CABLE TELEVISION CROSS-OWNERSHIP RULES SECTIONS 63.54-63.56 Legal Authority: 47 USC 151; 47 USC 154; 47 USC 201; 47 USC 202; 47 USC 203; 47 USC 204; 47 USC 205; 47 USC 218; 47 USC 220; 47 USC 214; 47 USC 521; 47 USC 533; 47 USC 522 CFR Citation: 47 CFR 63.54; 47 CFR 63.55; 47 CFR 63.56; 47 CFR 63.57; 47 CFR 63.58 Legal Deadline: None Abstract: In this stage of the proceeding, the Commission issued a Second Report and Order that modifies FCC rules and regulatory policy to enable local telephone companies to participate in the video marketplace through video dialtone. The FCC decided that local telephone companies may make available to multiple service providers, on a nondiscriminatory common carrier basis, a basic platform that will deliver video programming and other services to end users. Such a policy will advance the FCC's goals of creating an advanced infrastructure, increasing competition in the video marketplace and enhancing the diversity of video services to the American public. The FCC also issued a Recommendation to Congress recommending that the statutory telephone company-cable television cross-ownership restriction be repealed. Further, the Commission solicited comments in a second further notice of proposed rulemaking on the issue of whether the rural exemption to the telephone company-cable television cross-ownership restrictions should be raised to 10,000 persons. As of 7/12/94, Commission has approved five applications for video dialtone trials and one application for commercial video dialtone service. Statement of Need: The Commission will consider petitions for reconsideration of its regulatory framework for provision of video services by local telephone companies. This framework established the terms and conditions by which companies may, consistent with statutory requirements, offer video services in their telephone service areas. The Commission's rules in this area are designed to promote investment in our national telecommunications infrastructure, increase competition in the provision of video services, and foster diverse sources of video programming. In furtherance of its video dialtone policy goals, the Commission is also currently considering applications from local telephone companies to offer video dialtone facilities and service to the public, on both a trial and permanent commercial basis. Alternatives: Prior to the Commission video dialtone order, telephone company participation in the video marketplace was limited to providing channel service for cable operators--that is, transmitting video signals to subscribers' homes for the cable operator. Telephone companies could not compete with cable operators in the telephone company service area. Anticipated Costs and Benefits: Video dialtone will benefit consumers, video programmers, telephone companies, and other service providers by fostering innovation in services, competition in the video marketplace, improved service quality, increased network usage and lower cost telecommunications services and products. Video dialtone should benefit the Nation as a whole by fostering the rapid development of advanced telecommunications facilities, the provision of innovative new services, and increased competition in the telecommunications marketplace. Timetable: _______________________________________________________________________ Action DFR Cite _______________________________________________________________________ NOI 52 FR 34818 09/15/87 FNOI/NPRM 53 FR 38042 09/29/88 First R&O 56 FR 65445 12/17/91 FNPRM/SFNOI 56 FR 65464 12/17/91 Recommendations to Congress 08/14/92 Reconsideration 57 FR 41109O 09/09/92 Second R&O 57 FR 41106 09/09/92 SFNPRM 57 FR 41118 09/09/92 Pending Video Dialtone Reconsideration 10/00/94 Further Action on Pending Video Dialtone Applications and Petit00/00/00 Small Entities Affected: Businesses Government Levels Affected: None Additional Information: For additional information on the Regulatory Plan, contact Gary Phillips, Federal Communications Commission, Common Carrier Bureau, 1919 M Street, Room 544, Washington, DC 20554, (202) 418-1573. Agency Contact: Adam Kupetsky Attorney Federal Communications Commission 202 418-1578 RIN: 3060-AE40 _______________________________________________________________________ FCC 203. EXPANDED INTERCONNECTION WITH LOCAL TELEPHONE COMPANY FACILITIES Legal Authority: 47 USC 151; 47 USC 154; 47 USC 201; 47 USC 202; 47 USC 203; 47 USC 204; 47 USC 205; 47 USC 218; 47 USC 220; 47 USC 404 CFR Citation: 47 CFR 69; 47 CFR 61; 47 CFR 64 Legal Deadline: None Abstract: The Commission adopted rules for expanded interconnection with local telephone company facilities for interstate special access and switched transport, authorized new pricing flexibility for LECs, and has sought comment on hand-off of switching information necessary to permit competition for the provision of tandem switching associated with switched transport. Statement of Need: On July 14, 1994. the Commission adopted a Memorandum Opinion and Order in which it reaffirmed its commitment to its expanded interconnection policy. The Commission acted in response to the June 10, 1994, decision of the U.S. Court of Appeals for the D.C. Circuit in Bell Atlantic Telephone Companies v. FCC. In that case, the court said it would vacate in part, and otherwise remand, the first two of the Commission's expanded interconnection orders, on the grounds that the agency lacked authority to require the telephone companies to provide expanded interconnection for special access through physical collocation. In the July 14 order, the Commission directed the local telephone companies to provide expanded interconnection through virtual collocation. The FCC exempted telephone companies from the mandatory virtual collocation requirement at central offices in which they choose to offer physical collocation subject to nonstreamlined regulation by the Commission as a communications common carrier service. The carriers are required to file virtual collocation tariffs on September 1, 1994, scheduled to become effective on December 15, 1994. The Commission's staff will review these tariffs once they are filed. Interested parties may, under the Commission's rules, file petitions to reject, or to suspend and investigate the tariffs. The Commission staff will review those petitions and determine whether rejection or investigation of the tariffs is warranted. Alternatives: By acting expeditiously before the court issues its mandate, the FCC sought to avoid the disruption to competition that might result if its expanded interconnection policy lapsed. The Commission's quick response to the court's decision will give affected parties clear guidance on their rights and obligations and preserve the public interest benefits of expanded interconnection. Anticipated Costs and Benefits: The increased competition generated by expanded interconnection should lead to lower access charges, which in turn will make it possible for long-distance companies to offer service at lower rates. Competition also creates incentives for telephone companies and their competitors to invest advanced telecommunications technologies, develop innovative services, give users a greater range of choices in telecommunications services, and provide existing services more efficiently. Timetable: _______________________________________________________________________ Action DFR Cite _______________________________________________________________________ NPRM & NOI 56 FR 34159 07/26/91 ANPRM 56 FR 44053 09/20/91 ANPRM Comment Pe56 FR 34159 11/06/91 R&O and NPRM 57 FR 54323 11/18/92 2nd NPRM 57 FR 56888 12/01/92 MO&O 57 FR 62481 12/31/92 NPRM Comment Per57 FR 58767 03/09/93 2nd MO&O 58 FR 48752 09/17/93 2nd MO&O and 3rd58 FR 48756 09/17/93 3rd R&O 59 FR 32925 06/27/94 MO&O 59 FR 38922 08/01/94 Carriers required to file collocation tariffs on 09/01/94 Effective Date 12/15/94 Small Entities Affected: None Government Levels Affected: None Additional Information: For additional information on the Regulatory Plan, contact David Sieradzki, Federal Communications Commission, Common Carrier Bureau, 1919 M Street, Room 544, Washington, DC 20554, (202) 418-1576. Agency Contact: James Schlicting Division Chief Federal Communications Commission 202 418-1580 RIN: 3060-AF04 BILLING CODE 6712-01-F
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