*Pages 1--13 from Microsoft Word - 19395.doc* PUBLIC NOTICE Federal Communications Commission 445 12 th St., S. W. Washington, D. C. 20554 News Media Information 202 / 418- 0500 Internet: http:// www. fcc. gov TTY: 1- 888- 835- 5322 DA 02- 1488 July 2, 2002 PETITION FOR WAIVER OF THE INTERNATIONAL SETTLEMENTS POLICY FOR A CHANGE IN ACCOUNTING RATE FOR INTERNATIONAL MESSAGE TELEPHONE SERVICES WITH TELEFONOS DE MEXICO S. A. DE C. V. Pleading Cycle Established ISP– WAV- 20020522- 00018 ISP– WAV- 20020528- 00019 Comments/ Petitions Due: August 1, 2002 Responses/ Oppositions Due: August 16, 2002 Southwestern Bell Communications Services, Inc. (“ SBCS”) and Sprint (“ Sprint”) (collectively the “Parties”) have filed separate petitions to waive the Commission’s International Settlements Policy (“ ISP”) to lower the accounting rate for International Message Telephone Services (“ IMTS”) between the Parties and their correspondent in Mexico, Telefonos de Mexico S. A. de C. V. (“ Telmex”). 1 SBCS has requested a waiver of the ISP in order to implement a proposed settlement rate reduction between SBCS and Telmex for traffic exchanged between the United States and Mexico. Sprint also requests a waiver of the ISP to implement a similar proposed settlement rate reduction between Sprint and Telmex for traffic exchanged between the United States and Mexico. The average settlement rate currently in effect with Telmex is US $0.19 per minute. Both Sprint and SBCS have submitted to the Commission proposed agreements with Telmex reflecting reductions in the settlement rate for certain traffic between the Parties and Telmex. The Parties state that the proposed agreements would reduce settlement rates with Telmex as follows: For the period January 1, 2001 through December 31, 2001 each party will pay the proposed average total settlement rate of $0.155 per minute. For the period January 1, 2002 1 Petition for Waiver of the International Settlement Policy for a Change in Accounting Rate for International Message Telephone Services with Telefonos de Mexico S. A. de C. V. (filed May 22, 2002) (SBCS Petition). Petition for Waiver of the International Settlement Policy for a Change in Accounting Rate for International Message Telephone Services with Telefonos de Mexico S. A. de C. V. (filed May 28, 2002) (Sprint Petition). 1 through February 28, 2002, each party will pay the proposed average total settlement rate of $0.135 per minute. For the period March 1, 2002 through December 31, 2003, the proposed rates to be paid by the Parties to Telmex (“ southbound”) would be divided into three different rates for different locations in Mexico, 2 and all traffic sent by Telmex to the Parties (“ northbound”) would be settled at $0.055 per minute. 3 The proposed settlement rate reductions of the Parties are detailed in the Supplementary Data Statement of their petitions (see Attachments below). The Parties argue that the Commission may find good cause to waive the ISP to allow implementation of the proposed rates. 4 The Parties state that the rates proposed are lower than the existing $0.19 settlement rate. 5 As such, they argue that waiving the ISP to permit the proposed settlement rate agreement with Telmex to go into effect would promote the public interest. 6 Both parties note that WorldCom and AT& T have filed petitions with the Commission to implement similar rates with Telmex and that Telmex has offered similar rates to other U. S. carriers. 7 Pursuant to Sections 1.415 and 1.419 of the Commission's rules, 47 C. F. R. §§ 1.415, 1.419, interested parties may file comments on or before August 1, 2002, and reply comments 2 SBCS states that the proposed agreement calls for: (1) a settlement rate of $0.055 per minute for IMTS traffic terminating in the three largest cities in Mexico (Mexico City, Guadalajara and Monterrey); (2) a settlement rate of $0.085 for IMTS traffic terminating in approximately 200 large and medium sized cities in Mexico; and (3) a settlement rate of $0.1175 for IMTS traffic terminating in all other locations in Mexico. SBCS Petition at 2. Sprint’s proposed agreement calls for identical rates for these categories of traffic. Sprint Petition at 2. 3 SBCS also states that the proposed agreement calls for a $0.095 settlement rate for Home Country Direct (“ HCD”), Inbound 800 (International Freephone) and Received Collect traffic for both the northbound and southbound routes. SBCS Petition at 2. Sprint states that its proposed agreement calls for a $0.11 settlement rate for HCD, Inbound 800 and Received Collect traffic for both the northbound and southbound rates. Sprint Petition at 2. 4 SBCS Petition at 2; Sprint Petition at 2. 5 Sprint Petition at 2. SBCS Petition at 2 (citing 1998 Biennial Regulatory Review, Reform of the International Settlements Policy and Associated Filing Requirements, 14 FCC Rcd 7963, 7993, ¶ 80 (1999)). SBCS also notes WorldCom’s estimate that these lower rates will generate cost savings of over $550 million for the years 2001 through 2003. SBCS Petition at 2 (citing Petition for Waiver of the International Settlements Policy for a Change in Accounting Rate for International Message Telephone Services with Telefonos de Mexico S. A. de C. V at 2 (Mar. 21, 2002) (WorldCom Petition)). 6 SBCS Petition at 2. Sprint argues that its proposed waiver is in the public interest because it moves the settlement rates closer to cost- based levels on the U. S.- Mexico route and it produces significant cost savings for the carriers, which may be passed along to consumers. Sprint Petition at 2. 7 Sprint Petition at 2. SBCS notes that, because Telmex has offered the same terms and conditions to other U. S. carriers, “the proposed agreement is non- discriminatory… [and] Telmex has not ‘whipsawed any U. S. Carriers.” SBCS also notes that, as a part of the proposed agreement, Telmex has promised to request the elimination of certain Mexican regulations to ensure fully competitive negotiations of international termination rates on the U. S.- Mexico route by January 1, 2004. SBCS Petition at 3. 2 on or before August 16, 2002. Any filings should reference the file number of the proceeding. An original and four copies of all pleadings must be filed in accordance with Section 1.51( c) of the Commission’s rules, 47 C. F. R. § 1.51( c). If filed by hand delivery, the Commission's contractor, Vistronix, Inc., will receive hand- delivered or messenger- delivered paper filings for the Commission's Secretary at 236 Massachusetts Avenue, N. E., Suite 110, Washington, D. C. 20002. The filing hours at this location are 8: 00 a. m. to 7: 00 p. m. All hand deliveries must be held together with rubber bands or fasteners. Any envelopes must be disposed of before entering the building. If filed by mail, the following procedures should be followed: Commercial Overnight Mail (other than U. S. Postal Service Express Mail and Priority Mail) must be sent to 9300 East Hampton Drive, Capitol Heights, MD 20743. U. S. Postal Service first- class mail, Express Mail, and Priority Mail should be addressed to 445 12th Street, SW, Washington, D. C. 20554. All filings must be addressed to the Commission’s Secretary, Office of the Secretary, Federal Communications Commission. In addition, one copy of each pleading must be sent to each of the following: (1) The Commission’s duplicating contractor, Qualex International, 445 12 th Street, S. W., Room CY- B402, Washington, D. C. 20554; e- mail: qualexint@ aol. com; facsimile: (202) 863- 2898; phone: 202 863- 2893. (2) George Li, Policy Division, International Bureau, 445 12 th Street, S. W., Room 6- A761, Washington, D. C. 20554; e- mail: gli@ fcc. gov; (3) Claudia Fox, Policy Division, International Bureau, 445 12 th Street, S. W., Room 6- A848, Washington, D. C. 20554; e- mail: cfox@ fcc. gov; (4) Susan O’Connell, Policy Division, International Bureau, 445 12 th Street, S. W., Room 6- A847, Washington, D. C. 20554; e- mail: soconnel@ fcc. gov; (5) David Strickland, Policy Division, International Bureau, 445 12 th Street, S. W., Room 5- C848, Washington, D. C. 20554; e- mail: dstrickl@ fcc. gov. (6) Gardner Foster, Policy Division, International Bureau, 445 12 th Street, S. W., Room 3- A625, Washington, D. C. 20554; e- mail: gfoster@ fcc. gov. Copies of the application and any subsequently- filed documents in this matter may be obtained from Qualex International, in person at 445 12 th Street, S. W., Room CY- B402, Washington, D. C. 20554, via telephone at (202) 863- 2893, via facsimile at (202) 863- 2898, or via e- mail at qualexint@ aol. com. The applications and any associated documents are also available for public inspection and copying during normal reference room hours at the following Commission office: FCC Reference Information Center, 445 12 th Street, S. W., Room CY- A257, Washington, D. C. 20554. 3 For further information, contact Gardner Foster, International Bureau, at (202) 418- 1460. 4 5 6 7 8 9 10 11 SUPPLEMENTARY DATA STATEMENT SETTLEMENT RATES BETWEEN SPRINT AND MEXICO (“ TELMEX”) Effective January 1, 2001, the accounting rate for International Message Telephone Service (IMTS) for traffic between Sprint’s U. S. service area and Mexico (“ Telmex”) will be changed as follows: SETTLEMENT RATE PER MINUTE IMTS and ISDN (Per conversation minute) EFFECTIVE EFFECTIVE 01/ 01/ 01 - 01/ 01/ 02 - CURRENT* 12/ 31/ 01* 02/ 28/ 02* SPRINT $0. 22201 Dial Day $0. 16670 $0. 1454 $0. 15541 Dial Night $0. 1440 $0. 1256 TELMEX $0.21459 Dial Day $0. 16300 $0. 1433 $0. 15021 Dial Night $0. 14300 $0. 1254 SURCHARGE** $2. 00 $2. 00 $2. 00 * A SEPARATE CALL SET UP SURCHARGE OF 30 SECONDS PER MESSAGE WILL APPLY ON SPRINT ACCESS (HOME COUNTRY DIRECT) CALLS. ** A $2.00 Surcharge applies per Received Collect message that uses one or more of the following services (Person-to- Person Collect, Station- to- Station Collect) when the ticketing is performed at the originating location. FOR OPERATOR- STATION, DIAL PERSON COLLECT AND PERSON TO PERSON CALLS, A THREE (3) MINUTE MINIMUM CHARGE AT THE PEAK RATE SHALL APPLY FOR EACH MESSAGE. The Dial Day and Dial Night Time Periods are as follows: Dial Day Monday – Friday 7: 00 AM – 7: 00 PM Sunday 5: 00 PM – 12: 00 AM Dial Night Monday – Friday 7: 00 PM – 7: 00 AM Saturday All Day Sunday 12: 00 AM – 5: 00 PM INTERNATIONAL MESSAGE TELEPHONE SERVICE INCLUDES IDDD, SPRINT ACCESS (HOME COUNTRY DIRECT), INTERNATIONAL OPERATOR SERVICE, AND INTERNATIONAL TOLL FREE SERVICE. 12 SUPPLEMENTARY DATA STATEMENT SETTLEMENT RATES BETWEEN SPRINT AND MEXICO (“ TELMEX”) Effective March 1, 2002, the accounting rate for International Message Telephone Service (IMTS) and International Switched Digital Service (ISDN) for traffic between Sprint’s U. S. service area and Mexico (“ Telmex”) will be changed as follows: SETTLEMENT RATE PER MINUTE IMTS and ISDN EFFECTIVE (Per conversation minute) 03/ 01/ 02 - 12/ 31/ 03 SPRINT * - IDDD, IOS Factor 1 Cities $0. 0550 Factor 2 Cities $0. 0850 Factor 3 Cities $0. 1175 SPRINT - IOS Collect, HCD, ITFS $0.1100 TELMEX - IDDD, IOS Flat $0. 055 TELMEX - IOS Collect, HCD, ITFS $0.110 SURCHARGE** $2. 00 * Please see attached tables for corresponding Factor Pricing. ** A $2.00 Surcharge applies per Received Collect message that uses one or more of the following services (Person-to- Person Collect, Station- to- Station Collect) when the ticketing is performed at the originating location. FOR OPERATOR- STATION, DIAL PERSON COLLECT AND PERSON TO PERSON CALLS, A THREE (3) MINUTE MINIMUM CHARGE AT THE PEAK RATE SHALL APPLY FOR EACH MESSAGE. The Dial Day and Dial Night Time Periods are as follows: Dial Day Monday – Friday 7: 00 AM – 7: 00 PM Sunday 5: 00 PM – 12: 00 AM Dial Night Monday – Friday 7: 00 PM – 7: 00 AM Saturday All Day Sunday 12: 00 AM – 5: 00 PM INTERNATIONAL MESSAGE TELEPHONE SERVICE INCLUDES IDDD, SPRINT ACCESS (HOME COUNTRY DIRECT), INTERNATIONAL OPERATOR SERVICE, AND INTERNATIONAL TOLL FREE SERVICE. 13