[Federal Register Volume 63, Number 152 (Friday, August 7, 1998)]
[Rules and Regulations]
[Pages 42275-42276]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21087]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Chap. I

[CC Docket No. 97-134; FCC 98-163]


Treatment of the Guam Telephone Authority and Similarly Situated 
Carriers as Incumbent Local Exchange Carriers

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: This Report and Order released July 20, 1998 adopts a rule 
treating Guam Telephone Authority (GTA) as an incumbent local exchange 
carrier. Adoption of this rule will ensure that the Territory of Guam 
has the same opportunity as the rest of our Nation to benefit from pro-
competitive, market-opening effects. In the Order, we decline to adopt 
the same rule with respect to a class or category of LECs situated 
similarly to GTA, because the record does not identify any members of 
such class or category.

EFFECTIVE DATE: September 8, 1998.

FOR FURTHER INFORMATION CONTACT: Alex Starr, Attorney, Common Carrier 
Bureau, Policy and Program Planning Division, (202) 418-1580. For 
additional information concerning the information collections contained 
in this Order contact Judy Boley at (202) 418-0214, or via the Internet 
at [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order 
adopted July 15, 1998 and released July 20, 1998. The full text of this 
Order is available for inspection and copying during normal business 
hours in the FCC Reference Center, 1919 M St., NW., Room 239, 
Washington, DC. The complete text also may be obtained through the 
World Wide Web, at
http://www.fcc.gov/Bureaus/Common Carrier/Orders/fcc98163.wp, or may be 
purchased from the Commission's copy contractor, International 
Transcription Service, Inc., (202) 857-3800, 1231 20th St., NW., 
Washington, DC 20036.

Regulatory Flexibility Certification

    In conformance with the Regulatory Flexibility Act, as amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996, we 
certify that the rule adopted herein will not have a significant 
economic impact on a substantial number of small entities. Our rule 
treating GTA as an incumbent LEC pursuant to section 251(h)(2) will 
affect only GTA and the limited number of entities that seek to 
interconnect with GTA's network or resell GTA's services. Even if all 
of these entities can be classified as small entities, we do not 
believe that they constitute a ``substantial number of small entities'' 
for purposes of the Regulatory Flexibility Act.

Synopsis of Report and Order

I. Introduction

    Pursuant to our express rulemaking authority in section 251(h)(2) 
of the Communications Act of 1934, as amended (Act or Communications 
Act), we adopt in this Report and Order the rule proposed by the 
Commission in Guam Public Utilities Commission Petition for Declaratory 
Ruling concerning Sections 3(37) and 251(h) of the Communications Act, 
Treatment of the Guam Telephone Authority and Similarly Situated 
Carriers as Incumbent Local Exchange Carriers under Section 251(h)(2) 
of the Communications Act, 62 FR 29320, May 30, 1997 (Guam Ruling/
Notice). In particular, we adopt a rule treating Guam Telephone 
Authority (GTA) as an incumbent local exchange carrier (LEC) for 
purposes of section 251. Adoption of this rule will ensure that the 
Territory of Guam (Guam) has the same opportunity as the rest of our 
Nation to benefit from the pro-competitive, market-opening effects of 
the Telecommunications Act of 1996. We decline at this time, however, 
to adopt the same rule with respect to a class or category of LECs 
situated similarly to GTA, because the record does not identify any 
members of such class or category.

II. Background

    2. In the Guam Ruling/Notice, the Commission resolved a Petition 
for Declaratory Ruling filed by the Public Utilities Commission of the 
Territory of Guam (Guam Commission) regarding sections 251(h)(1) and 
3(37) of the Communications Act. The Commission held that (i) GTA--the 
only LEC throughout Guam--is not an ``incumbent local exchange 
carrier'' within the meaning of section 251(h)(1), and (ii) GTA is a 
``rural telephone company'' within the meaning of section 3(37).
    3. One effect of the Commission's holdings in the Guam Ruling/
Notice was that GTA could permanently avoid the interconnection, 
unbundling, resale, and other obligations imposed on incumbent LECs by 
section 251(c) of the Communications Act. Imposing these obligations on 
incumbent LECs, including rural telephone companies in appropriate 
circumstances, is one of the 1996 Act's primary methods of fostering 
the development of competition in the local exchange market. As a 
result, in the Guam Ruling/Notice, the Commission also issued a Notice 
of Proposed Rulemaking proposing that the Commission adopt, pursuant to 
section 251(h)(2) of the Communications Act, a rule providing for the 
treatment of GTA as an incumbent LEC for purposes of section 251. Under 
section 251(h)(2), the Commission ``may, by rule, provide for the 
treatment of a local exchange carrier (or class or category thereof) as 
an incumbent local exchange carrier for purposes of (section 251)'' if:

    (A) such carrier occupies a position in the market for telephone 
exchange service within an area that is comparable to the position 
occupied by a carrier described in paragraph (1); (B) such carrier 
has substantially replaced an incumbent local exchange carrier 
described in paragraph (1); and (C) such treatment is consistent 
with the public interest, convenience, and necessity and the 
purposes of this section. 47 U.S.C. 251 (h)(2).

    4. In the Guam Ruling/Notice, the Commission sought comment on the 
proposal therein to adopt a rule pursuant to section 251(h)(2) treating 
GTA as an incumbent LEC for purposes of section 251. The Commission 
also sought comment regarding whether LECs situated similarly to GTA 
exist and, if so, whether the Commission should adopt the same rule 
with respect to such class or category of LECs.

III. Discussion

    5. hereby adopt in this Report and Order the rule proposed by the 
Commission in the Guam Ruling/Notice. In particular, pursuant to our 
express rulemaking authority in section 251(h)(2) of the Act, we adopt 
a rule treating GTA as an incumbent LEC for purposes of section 251.
    6. We decline at this time, however, to adopt a general rule under 
section 251(h)(2) treating as incumbent LECs all members of a class or 
category of LECs situated similarly to GTA. We so decline because the 
record does not indicate

[[Page 42276]]

that any LEC situated similarly to GTA exists. We may revisit this 
issue if and when we become aware of the existence of a LEC or class or 
category of LECs similarly situated to GTA.

IV. Final Regulatory Flexibility Analysis

    7. Pursuant to the Regulatory Flexibility Act (RFA), as amended by 
the Small Business Regulatory Enforcement Fairness Act of 1996 
(SBREFA), the Commission certified in the Guam Ruling/Notice that the 
proposed rule would not have a significant economic impact on a 
substantial number of small entities. We received no comments regarding 
this certification.
    8. In conformance with the RFA, as amended by the SBREFA, we 
certify that the rule adopted herein will not have a significant 
economic impact on a substantial number of small entities. Our rule 
treating GTA as an incumbent LEC pursuant to section 251(h)(2) will 
affect only GTA and the limited number of entities that seek to 
interconnect with GTA's network or resell GTA's services. Even if all 
of these entities can be classified as small entities, we do not 
believe that they constitute a ``substantial number of small entities'' 
for purposes of the Regulatory Flexibility Act.
    9. The Commission's Office of Public Affairs, Reference Operations 
Division, shall send a copy of this Report and Order, including the 
foregoing certification and statement, to the Chief Counsel for 
Advocacy of the Small Business Administration. It shall also include a 
copy of this Report and Order, including the foregoing certification 
and statement, in the report to Congress.

V. Ordering Clauses

    10. Accordingly, it is ordered, pursuant to sections 1, 2, 4, 251, 
and 303(r) of the Communications Act of 1934, as amended, 47 U.S.C. 
151, 152, 154, 251, and 303(r), that the report and order is adopted, 
and the requirements contained herein shall become effective September 
8, 1998.

Federal Communications Commission.
Magalie Roman Salas,
Secretary.
[FR Doc. 98-21087 Filed 8-6-98; 8:45 am]
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