*Pages 1--10 from Microsoft Word - 21817.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- 2200 October 4, 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. ; EX PARTE TREATMENT OF ALL PETITIONS FOR CHANGE IN ACCOUNTING RATE FOR INTERNATIONAL MESSAGE TELEPHONE SERVICES WITH TELEFONOS DE MEXICO S. A. DE C. V. Pleading Cycle Established ISP- WAV- 20020729- 00026 ISP- WAV- 20020322- 00012 ISP- WAV- 20020528- 00019 ISP- WAV- 20020419- 00014 ISP- WAV- 20020522- 00018 ISP- WAV- 20020705- 00022 Comments/ Petitions Due: November 4, 2002 Responses/ Oppositions Due: November 19, 2002 Verizon Global Solutions Inc. (“ Verizon”) has filed a petition to waive the Commission’s International Settlements Policy (“ ISP”) to lower the accounting rate for International Message Telephone Services (“ IMTS”) between Verizon and its correspondent in Mexico, Telefonos de Mexico S. A. de C. V. (“ Telmex”). 1 Verizon has requested a waiver of the ISP in order to implement a proposed settlement rate reduction between Verizon 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. Verizon has submitted to the Commission a proposed agreement with Telmex reflecting reductions in the settlement rate for certain traffic between Verizon and Telmex. Verizon states 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 July 29, 2002) (Verizon Petition). 1 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 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 Verizon to Telmex (“ southbound”) would be divided into three different rates for different locations in Mexico, 2 and all traffic sent by Telmex to Verizon (“ northbound”) would be settled at $0.055 per minute. 3 Verizon’ proposed settlement rate reductions are detailed in the Supplementary Data Statement of their petition (see Attachment below). Verizon argues that the Commission may find good cause to waive the ISP to allow implementation of the proposed rates. 4 Verizon states that the rates proposed are lower than the existing $0.19 settlement rate. 5 As such, Verizon argues that waiving the ISP to permit the proposed settlement rate agreement with Telmex to go into effect would promote the public interest. 6 Verizon notes that WorldCom, SBCS, Sprint 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 2 Verizon 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 roughly 150 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. Verizon Petition at 2. 3 Verizon also states that the proposed agreement calls for a $0.11 settlement rate for Home Country Direct, Inbound 800 (International Freephone) and Received Collect traffic for both the northbound and southbound routes. Verizon Petition at 2. 4 Verizon Petition at 2 5 Verizon Petition at 3 6 Verizon Petition at 3 (citing 1998 Biennial Regulatory Review, Reform of the International Settlements Policy and Associated Filing Requirements, Report and Order and Order on Reconsideration, 14 FCC Rcd 7963, 7993, ¶ 80 (1999)). Verizon further argues that the proposed arrangement provides for geographically based rates for Mexico terminating traffic in an attempt to more closely reflect cost which “move[ s] closer to achieving the Commission’s market- opening goals in a flexible manner.” Verizon Petition at 3 (citing International Settlement Rates, Report and Order, 12 FCC Rcd. 19806 (1997), aff’d sub. nom, Cable & Wireless et al. v. FCC, 166 F. 3d 1224 (D. C. Cir. 1999). 7 Verizon Petition at 3. Verizon notes that, because Telmex has offered the same terms and conditions to other U. S. carriers, “the proposed arrangement precludes the abuse of market power… [and] no U. S. carrier has been ‘whipsawed’ in the negotiations with Telmex.” Verizon Petition at 3- 4. Verizon 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. Verizon Petition at 4. 2 The Commission has received five other petitions for waiver, similar to the petition submitted by Verizon. 8 The Commission issued Public Notice announcements for each of these petitions setting dates for public comment on the waiver requests. 9 Those notices did not address the ex parte treatment for these requests. Pursuant to section 1.1200( a) of the Commission’s rules, 10 we classify this proceeding as permit- but- disclose for purposes of the ex parte rules. 11 We find that the issues before us in these requests have applicability beyond the parties, and find that it would therefore serve the public interest to facilitate participation of interested members of the public. Effective with the release of this Public Notice, ex parte presentations associated with these waiver petitions are permitted, provided they are disclosed as provided in the Commission’s rules. 12 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 November 4, 2002, and reply comments on or before November 19, 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. 8 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 March 22, 2002) (WorldCom 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 April 19, 2002) (AT& T 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 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); 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 June 24, 2002) (Williams Petition). 9 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., DA 02- 1251 (rel. May 24, 2002) (WorldCom and AT& T Public Notice); 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., DA 02- 1488 (rel. July 2, 2002) (Sprint and SBCS Public Notice); 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. DA 02- 1736 (rel. July 29, 2002) (Williams Public Notice). 10 47 C. F. R. § 1.1200( a). 11 See 47 C. F. R. § 1.1206. 12 Id. 3 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 7- A669, Washington, D. C. 20554; e- mail: gli@ fcc. gov; (3) Claudia Fox, Policy Division, International Bureau, 445 12 th Street, S. W., Room 7- A662, Washington, D. C. 20554; e- mail: cfox@ fcc. gov; (4) Susan O’Connell, Policy Division, International Bureau, 445 12 th Street, S. W., Room 7- B544, Washington, D. C. 20554; e- mail: soconnel@ fcc. gov; (5) David Strickland, Policy Division, International Bureau, 445 12 th Street, S. W., Room 7- B428, Washington, D. C. 20554; e- mail: dstrickl@ fcc. gov. (6) Gardner Foster, Policy Division, International Bureau, 445 12 th Street, S. W., Room 7- A861, 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 application 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. For further information, contact Gardner Foster, International Bureau, at (202) 418- 1460. 4 ATTACHMENT Verizon Settlement Rate Schedules. Settlement Rate Schedule 1 Between TeImex and GSI DIAL DAY DIAL NIGHT U. S. Billed US$ 0. 16670 US$ 0. 14400 Mexico Billed US$ 0. l6300 us$ 0. 14300 € Notes € The “Dial Day rate period is defined as Monday through Friday 7: 00 a. m. to 7: 00 p. m., and Sunday 5: 00 p. m. to 12: 00 a. m. The “Dial Night” rate period is defined as Monday through Friday 7: 00 p. m. to 7: 00 a. m., all day Saturday, and Sunday 12: OO a. m. to 5: 00 p. m. € The 2001 weighted average settlement rates is $0. 155 € A $2.00 surcharge applies per Received Collect messages that uses one or more of the following services (Person- to- Person collect, Station- to- Station collect) when the ticketing is performed at the originating location. € For Operator Station, Person Collect and Person- to- Person calls, a three- (3) minute minimum charge at the Dial Day rate shall apply for each message. € These rates are calculated using Telmex and Telnor data for the period January 1 St , 2000 to December € 31 st , 2000, as provided by Telmex. € Proportionate return methodology 3- 3- 3. 5 Settlement Rate Schedule 2 Between Telmex and GSI For the Period January 1,2002 To February 28, 2002 DIALDAY DIALNIGHT U. S. Billed US$ 0.1454 US$ 0. l256 Mexico Billed US$ 0.1433 US$ 0.1245 € Notes € The “Dial Day rate period is defined as Monday through Friday 7: 00 a. m. to 7: 00 p. m., and Sunday 5: 00 pm. to 12: OO a. m. The “Dial Night” rate period is defined as Monday through Friday 7: 00 p. m. to 7: 00 a. m., all day Saturday, and Sunday 12: OO a. m. to 5: 00 p. m. € A US$ 2.00 surcharge apphes per Received Collect message that uses one or more of the following services (Ferson- to- Person collect, Station- to- Station collect) w L llen the ticketing is performed at the originating location. € For Operator Station, Person Collect and Person- to- Person calls, a three- (3) minute minimum charge at the Dial Day rate shall apply for each message. € These rates are calculated using Telmex and Telnor data for the period January l St , 2000 to December € 3 l”, 2000, as provided by Telmex. € Proportionate return methodology 2- 2- 2 6 Settlement Rate Schedule 3 Between Telmex and GSI Associated Mexican Numbering Plan Area Codes (MNPAs) for Termination in Mexico City, Guadalajara and Monterrey at US$ 0.055: 55 33 81 2. Associated MNPAs for Termination in “Medium- Sized Cities” at US% 0.085: 7 3. Associated MNPAs for “Rest of Mexico” Termination at US$ 0. 1175: 8 9 347 457 674 797 348 458 675 821 349 459 677 824 355 465 687 825 4. Rates for USA Terminating Traffic: US$ 0. 055. € Notes: € The tables above reference the MNPA’s under the new lo- digit dialing plan in Mexico. € Telmex has provided, in a separate electronic file (due to the amount of raw data) the necessary logic to map the old 8 digit dialing plan to the above mentioned rates, as the 8 digit dialing plan will coexist with the new 10 digit plan until, at the latest, May 17 th , 2002. € Above rates and factors apply specifically to the following services: dial, station- to- station, person- to-person, Paid 800, ISDN, facsimile, calling card calls either dialed directly by a subscriber or operator handled, and such other services as the Parties may expressly agree shall be included in this Agreement. € For International 800 (I- 800), Home Country Direct and Received Collect Services a flat, per minute rate of US$ 0.11 apply. € A US$ 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, Person Collect and Person- to- Person calls, a three- (3) minute minimum charge shall apply for each message. € Proportionate return methodology 2- 2- 2. € The parties agree to consider a different methodology (i. e. 1- 2- 1) for 2003. 10