*Pages 1--12 from Microsoft Word - 53599.doc* Federal Communications Commission DA 05- 3162 Before the Federal Communications Commission Washington, D. C. 20554 In the Matter of ) ) Revision of ARMIS Annual Summary Report ) (FCC Report 43- 01), ARMIS USOA Report ) (FCC Report 43- 02), ARMIS Joint Cost Report ) (FCC Report 43- 03), ARMIS Access Report ) (FCC Report 43- 04), ARMIS Service Quality ) Report (FCC Report 43- 05), ARMIS Customer ) CC Docket No. 86- 182 Satisfaction Report (FCC Report 43- 06), ) ARMIS Infrastructure Report (FCC Report 43- 07), ) ARMIS Operating Data Report (FCC Report 43- 08), ) ARMIS Forecast of Investment Usage Report ) (FCC Report 495A), and ARMIS Actual Usage of ) Investment Report (FCC Report 495B) for Certain ) Class A and Tier 1 Telephone Companies ) ORDER Adopted: December 8, 2005 Released: December 8, 2005 By the Chief, Industry Analysis and Technology Division: I. INTRODUCTION 1. In this Order, we revise two of the Automated Reporting Management Information System (ARMIS) reports: 1 first to implement a recent Commission order 2 and, second, as required by the Commission’s rules. 3 In addition, we clarify definitions and descriptions in several ARMIS reports to ensure consistency among reports and to improve the understanding of existing requirements. Finally, we 1 The ARMIS reporting requirements were established by the Commission in 1987 to facilitate the timely and efficient analysis of carrier costs and revenue, to provide an improved basis for audits and other oversight functions, and to enhance the Commission’s ability to quantify the effects of alternative policy proposals. Additional ARMIS Reports were added in 1991 and 1992. Carriers must submit the ARMIS reports to the Commission annually on or before April 1. 2 See Federal- State Joint Conference on Accounting Issues, 2000 Biennial Regulatory Review— Comprehensive Review of the Accounting Requirements and ARMIS Reporting Requirements for Incumbent Local Exchange Carriers: Phase II, Jurisdictional Separations Reform and Referral to the Federal- State Joint Board, Local Competition and Broadband Reporting, WC Docket No. 02- 269, and CC Docket Nos. 00- 199, 80- 286, and 99- 301, Report and Order, 19 FCC Rcd 11732 (2004) (Joint Conference Order). 3 47 C. F. R. § 54.303( a). 1 Federal Communications Commission DA 05- 3162 adopt other minor, technical changes to the ARMIS reports pursuant to the authority delegated to the Wireline Competition Bureau in the ARMIS Order 4 and section 0.291 of the Commission’s rules. 5 2. Because these changes are minor and, in most cases made pursuant to the recommendations of the carriers filing the reports, we find good cause to conclude that notice and comment procedures of the Administrative Procedure Act are unnecessary. 6 II. DISCUSSION A. General 3. In this Order we implement changes to two ARMIS reports, and we make minor corrections and provide improved definitions, descriptions, and instructions that will lead to greater clarity and consistency in reporting by incumbent local exchange carriers. In the following sections, we discuss the more important modifications. The Appendix contains a complete listing of the revisions that we make to the ARMIS reports. Detailed instructions for the completion of the reports, which incorporate the changes made in this Order, are available for public inspection and copying at the Commission’s Reference Information Center at Portals II, 445 Twelfth Street, S. W., Room CY- A257, Washington, D. C. 20554 and from Best Copy and Printing, Inc., Portals II, 445 Twelfth Street, S. W., CY- B402, Washington, D. C. 20554. Copies of the detailed instructions may also be obtained over the Internet, from the Commission’s web site, at the web address: . B. FCC Report 43- 01 - The Annual Summary Report 4. FCC Report 43- 01, the Annual Summary Report, summarizes the carriers’ accounting and cost allocation data prescribed in Parts 32, 36, 64, 65, and 69 of the Commission’s rules. 7 In this Order, in Table I (Cost and Revenue), we remove Row 1970, Common Line Support – Long Term, as required by our rules. 8 In Table II (Demand Analysis), we clarify the instructions for Row 2090, by removing the reference to mobile telephone/ pagers. Part I of the Appendix to this Order contains revisions to this report. C. FCC Report 43- 03 - The Joint Cost Report 5. FCC Report 43- 03, the Joint Cost Report, provides a detailed view of carriers’ regulated and nonregulated cost and revenue allocations by study area, pursuant to section 64.901 of the Commission’s 4 Automated Reporting Requirements for Certain Class A and Tier 1 Telephone Companies (Parts 31, 43, 67, and 69 of the FCC’s Rules), CC Docket No. 86- 182, Report and Order, 2 FCC Rcd 5770 (1987), modified on recon., 3 FCC Rcd 6375 (1988) (ARMIS Order). 5 47 C. F. R. § 0. 291. In this Order, we revise or clarify five ARMIS Reports: FCC Report 43– 01, the Annual Summary Report; FCC Report 43- 03, the Joint Cost Report; FCC Report 43- 05, the Service Quality Report; FCC Report 43- 07, the Infrastructure Report; and FCC Report 43- 08, the Operating Data Report. 6 See 5 U. S. C. § 553( b)( 3)( B) (providing that notice and comment are not required “when the agency for good cause finds (and incorporates the finding and a brief statement therefore in the rules issued) that notice and public procedure thereon are impractical, unnecessary or contrary to the public interest.”) 7 47 C. F. R. Parts 32, 36, 64, 65, and 69. 8 47 C. F. R. § 54. 303( a). 2 Federal Communications Commission DA 05- 3162 rules. 9 In this Order, in compliance with a recent Commission order, we add two new rows and associated instructions in order to add wholesale and retail percentages for account 6623. 10 Part II of the Appendix to this Order contains revisions to this report. D. FCC Report 43- 05 - The Service Quality Report 6. FCC Report 43- 05, the Service Quality Report, measures carrier trends in service quality under price- cap regulation by study area, pursuant to section 43.21( g) of the Commission’s rules. 11 In this Order we make several minor clarifying changes within the forms and instructions for this report. We make minor changes to update the forms for Table III (Common Trunk Blockage) and Table V (Service Quality Complaints). Finally, we add clarifying language to the instructions for Table IV (Total Switch Downtime), Column (an) – Total Number of Switches. Part III of the Appendix to this Order contains the revisions to this report. E. FCC Report 43- 07 - The Infrastructure Report 7. FCC Report 43- 07, the Infrastructure Report, details carrier trends in telephone industry infrastructure development under price- cap regulation by study area, pursuant to section 43.21( i) of the Commission’s rules. 12 In this Order we make several minor clarifying changes within the forms and instructions for this report. Within Table I (Switching Equipment) we make minor changes to row titles for Rows 0113, and 0114, we clarify the General Instructions for this table, and we modify the instructions for Rows 0110, 0111, 0113, and 0114 in order to clarifly switching equipment nomenclature. Part IV of the Appendix to this Order contains the revisions to this report. F. FCC Report 43- 08 - The Operating Data Report 8. FCC Report 43- 08, the Operating Data Report, details combinations of carriers’ statistical data designed to monitor network growth, usage, and reliability by operating company, pursuant to section 43.21( j) of the Commission’s rules. 13 In this Order we make several minor clarifying changes within the forms and instructions for this report. Within Table II (Switched Access Lines in Service) we make a minor change to the column title for Column (ck). We modify the instructions for Central Office Switches and for Columns (ck) and (cl), in order to clarify the types of central office and remote switches that are to be reported. In Table III (Access Lines in Service by Customer), we modify the table’s format and change column titles of Columns (fd) and (fe), and we modify the instructions for these columns and for Column (fc). We do this in order to clarify that Payphone Lines are a subset of Multiline Business Switched Access Lines, and to correct formulas in Columns (fc) and (fd). Part V of the Appendix to this Order contains the revisions to this report. 9 47 C. F. R. § 64. 901. 10 Joint Conference Order, para. 14. 11 47 C. F. R. § 43. 21( g). 12 47 C. F. R. § 43. 21( i). 13 47 C. F. R. § 43. 21( j). 3 Federal Communications Commission DA 05- 3162 III. PAPERWORK REDUCTION ACT 9. This document contains modified information collection requirements subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104- 13. It will be submitted to the Office of Management and Budget (OMB) for review under Section 3507( d) of the PRA. OMB, the general public, and other Federal agencies are invited to comment on the new or modified information collection requirements contained in this proceeding. IV. ORDERING CLAUSE 10. Accordingly, IT IS ORDERED, pursuant to the authority contained in sections 1, 4( i), 4( j), 201- 205, 215, 218, 219, and 220 of the Communications Act of 1934, as amended, 47 U. S. C. §§ 151, 154( i), 154( j), 201- 205, 215, 218, 219, and 220, and sections 0.91 and 0.291 of the Commission’s rules, 47 C. F. R. §§ 0.91 and 0.291, that FCC Report 43- 01, the Annual Summary Report, FCC Report 43- 03, the Joint Cost Report, FCC Report 43- 05, the Service Quality Report, FCC Report 43- 07, the Infrastructure Report, and FCC Report 43- 08, the Operating Data Report ARE REVISED, as set forth above and in the Appendix to this Order, effective for filings due April 1, 2006. FEDERAL COMMUNICATIONS COMMISSION Rodger A. Woock Chief, Industry Analysis and Technology Division 4 Federal Communications Commission DA 05- 3162 Summary of Changes APPENDIX FCC Report 43- 01 December 2005 Page 1 of 8 PART I — Summary of changes to FCC Report 43- 01 (The Annual Summary Report) A. Table I – Cost and Revenue Report Definition – Form The following row is deleted: Row 1970 - Common Line Support - Long Term. Report Definition – Row Instructions 1. The following row instruction is changed to read: Row 1865. Other Long- term Liabilities and Deferred Credits – The balance of Account 4300. Amounts excluded from ratemaking are removed from Row 1885. 2. The following row instruction is deleted: Row 1970. Common Line Support – Long Term. B. Table II – Demand Analysis Report Definition – Row Instructions The following row instructions are changed to read: 1. Row 2090. Single Line Business Access Lines subject to the single line business interstate end user common line charge, pursuant to Sections 69. 104( h) and (n), excluding company official, off- premises extensions, and special access. Enter end- of- year, in- service amounts. Include resold lines, pursuant to Section 51.617( a). 2. Row 2100. Residence Lifeline Access Lines for which the interstate end user common line charge, pursuant to Section 54.403 is reduced or waived. The decision to implement a lifeline plan is left to the individual state commission. Enter end- of- year, in- service amounts. Include resold lines, pursuant to Section 51.617( a). 3. Row 2110. Residence Non- Lifeline Access Lines subject to the residence interstate end user common line charge, pursuant to Sections 69.104 (f), (g), and (n). This count will include employee concession lines. Enter end- of- year, in- service amounts. Include resold lines, pursuant to Section 51.617( a). 4. Row 2120. Multi- line Business Access Lines subject to the multiline business interstate end user common line charge, pursuant to Sections 69.104( b) and (o), including payphone lines, PBX trunks, Centrex CU trunks, hotel/ motel LD trunks and Centrex CO lines. Enter end- of-year, in- service amounts. Include resold lines, pursuant to Section 51.617( a). 5 Federal Communications Commission DA 05- 3162 Summary of Changes APPENDIX FCC Report 43- 03 December 2005 Page 2 of 8 PART II — Summary of changes to FCC Report 43- 03 (The Joint Cost Report) A. Table I – Regulated/ Nonregulated Data Report Definition – Form The following rows are added: 1. Row 6623.1 - % Customer service - Wholesale. 2. Row 6623.2 - % Customer service - Retail. Report Definition – Row Instructions The following row instructions are added: 1. Row 6623.1. % Customer service - Wholesale – Enter the percentage of customer service expense (Account 6623) that represents wholesale. If wholesale represents 60.5%, enter 60.5. 2. Row 6623.2. % Customer service - Retail – Enter the percentage of customer service expense (Account 6623) that represents retail. If retail represents 39.5%, enter 39.5. 6 Federal Communications Commission DA 05- 3162 Summary of Changes APPENDIX FCC Report 43- 05 December 2005 Page 3 of 8 PART III – Summary of changes to FCC Report 43- 05 (The Service Quality Report) Report Definition – Summary The fourth paragraph following the table of contents is changed to read: REMEMBER: Footnotes are mandatory in Table I, Rows 0110 and 0114, Table II, Row 0134, and in Table IV- A, Column (t). Footnotes are mandatory for all “Irretrievable” entries, and for any data entry containing UNE data. A. Table III – Common Trunk Blockage Report Definition – Form 1. Remove the “#” from all row titles in the Classification column. 2. Remove the Legend. B. Table IV – Total Switch Downtime Report Definition – Column Instructions The following column instruction is changed to read: Column (an) - Total Number of Switches - Switching entities (switches) are assemblies of equipment designed to establish connections between lines and trunks. Switching entities include switches that provide local service only, as well as switches that provide both local and tandem service, class 5 switching machines and any associated remote switching machines; e. g., a host end office and its three associated remote switches will be reported as four switching entities. Switching entities designed exclusively for access tandem, class 4, or operator services are not reported here. Also, the remote terminals of concentrators and Integrated Digital Loop Carrier systems are not reported here, because they are not switching entities. There may be more than one switching entity per central office or wire center. Enter in whole numbers. C. Table V – Service Quality Complaints Report Definition – Form 1. Remove the “#” from all row titles in the Classification column. 2. Remove the Legend. 7 Federal Communications Commission DA 05- 3162 Summary of Changes APPENDIX FCC Report 43- 07 December 2005 Page 4 of 8 PART IV – Summary of changes to FCC Report 43- 07 (The Annual Infrastructure Report) Report Definition – Summary The third paragraph following the table of contents is changed to read: REMEMBER: Footnotes are mandatory in Table II for Rows 0410, 0460, and 0484. Footnotes are mandatory for all “Irretrievable” entries, and for any data entry containing UNE data. A. Table I – Switching Equipment Report Definition – Form Modify row titles as shown: 1. Row 0113 - Host Switches. 2. Row 0114 - Remote Switches (Stand- Alone Only). Report Definition – General Instructions The first paragraph is changed to read: Switches - Switches are assemblies of equipment and software designed to establish connections among lines or between lines and trunks. Switches include tandems, local , class 5 switching machines and any associated remote switching machines; e. g., a host end office and its three associated remote switches will be reported as four switches. However, the remote terminals of concentrators and Integrated Digital Loop Carrier systems are not reported in this table, because they are not switching entities. There may be more than one switch per central office or wire center. Report Definition – Row Instructions The following row instructions are changed to read: 1. Row 0110 - Total Switches - Enter in whole numbers, the total quantity of local and tandem switches. This amount is equal to the sum of Rows 0150 and 0170. Local switches include both host switches and their associated remote switches. Remote switches to be included in the total switches count are those described in the general definition of a remote switch. 1 A remote switch can generally be described as a switch that has no connection to the facilities network except through its host switch. The host provides the processing capabilities and certain control functions for the remote switch under the direction of the host central processor, and controls the remote switch over a pair of dedicated data links. 1 See Adjustments to Price Cap Carriers’ Service Quality and Infrastructure Reports in ARMIS, CC Docket No. 87- 313, Public Notice, 7 FCC Rcd 3591 (Com. Car. Bur. 1992). Technically concise definitions of “host” and “remote” switches are found in the Local Exchange Routing Guide. 8 Federal Communications Commission DA 05- 3162 Summary of Changes APPENDIX FCC Report 43- 07 December 2005 Page 5 of 8 Note: Since some switches are used for both local and tandem switching, the sum of Rows 0111 and 0112 may be greater than the amount entered on this row. For example, if there are 6 local switches, 4 tandem switches and 5 switches that are used for both local and tandem switching, Row 0111 would equal 11 local switches, Row 0112 would equal 9 switches, and Row 0110 would equal 15 switches. In this case, the sum of Rows 0111 and 0112 (20) would be greater than the amount of total switches (15). Also, since we are asking only for the number of remote switches with stand- alone capability in Row 0114, this quantity will be less than the number of remote switches included in Row 0110. This is because Row 110 includes the total of both stand- alone and non stand- alone remote switches. For example, if there are 16 total remote switches, where 7 have stand- alone capability and 9 do not, the quantity entered on Row 0114 (7) would be less than the number of remote switches included in Row 0110 (16). 2. Row 0111 - Local Switches - Enter in whole numbers, the total quantity of switches used as local switches. Local switches encompass switches with no subtending remote switches, as well as host switches and their associated remote switches (both stand- alone and non stand-alone). 3. Row 0113 - Host Switches - Enter in whole numbers, the total quantity of host switches. A host switch is a switch that serves one or more remote switches. 4. Row 0114 - Remote Switches (Stand- Alone Only) - Enter in whole numbers, the total quantity of remote stand- alone switches. Include on this row, only those remote switches that are equipped to operate in a stand- alone fashion (i. e., able to operate if the host fails, or if the data links to the host fail) to be able to provide more limited service. Remote switches that are not within this description, i. e., those that are non stand- alone remote switches, should not be included on this row. Note: A remote switch can generally be described as a switch that has no connection to the facilities network except through its host switch. The host provides the processing capabilities and certain control functions for the remote switch under the direction of the host central processor, and controls the remote switch over a pair of dedicated data links. All types of remote switches, i. e., both stand- alone and non stand- alone, are included with the switch counts in Row 0110 and Row 0111. However, Row 0114 excludes remote switches that are incapable of providing stand- alone operation when the host switch fails. 9 Federal Communications Commission DA 05- 3162 Summary of Changes APPENDIX FCC Report 43- 08 December 2005 Page 6 of 8 PART V – Summary of changes to FCC Report 43- 08 (The Operating Data Report) A. Table II – Switched Access Lines in Service Report Definition – Form Modify the column title as shown: (ck) Central Office Switches Excluding Remote Switches. Report Definition – General Instructions The second paragraph is changed to read: Report in Table II only those access lines connecting end users with their end offices for switched services. Access lines are classified as analog or digital based on the type of service provided. Include 800 and 800- like access lines and employee concession lines but do NOT include official/ company circuits in the access line counts. Provide a footnote if this has been done differently in the past. Do not include in Table II circuits that provide access to an interexchange carrier. Do not include in Table II any special access lines, including the closed end of WATS and FX; all special access lines should be included in Table III, column (fj) or (fk). All local private lines should be included in Table III, column (fm). Report Definition – Column Instructions The following column instructions are changed to read: 1. Central Office Switches - Assemblies of equipment and software designed to establish connections among lines or between lines and trunks, including access tandems, local, class 5 switching machines, and any associated stand- alone and non stand- alone remote switching machines. There may be more than one switch per central office or wire center. If more than one switch is housed in a single building or structure, be sure to count each switch separately. Do not separately count each three- digit telephone number prefix as a separate switch. 2. (ck) Central Office Switches Excluding Remote Switches - The amount in column (cm) minus the amount in column (cl) for each row. 3. (cl) Remote Switches - Generally described as a switch that has no connection to the facilities network except through its host switch. The host provides the processing capabilities and certain control functions for the remote under the direction of the host central processor and controls the remote over a pair of dedicated data links. Include not only those remote switches that are equipped to operate in a stand- alone fashion to be able to provide more limited service, but also those that are not so equipped, i. e., non stand- alone remote switches. 10 Federal Communications Commission DA 05- 3162 Summary of Changes APPENDIX FCC Report 43- 08 December 2005 Page 7 of 8 B. Table III – Access Lines in Service by Customer Report Definition – Form Modify column structure and titles as shown: 1. (fd) Multiline Business Switched Access Lines – Other than Payphone Lines. 2. (fe) Multiline Business Switched Access Lines – Payphone Lines. 3. Revise table structure as shown infra: TABLE III – ACCESS LINES IN SERVICE BY CUSTOMER Business Switched Access Lines Residential Switched Access Lines Multiline Non- Lifeline ROW NO. STATE OR TERR. (fa) Code (fb) Single Line (fc) Other Than Payphone Lines (fd) Payphone Lines (fe) Lifeline (ff) Primary (fg) Non-Primary (fh) Total Switched Access Lines (fi) Report Definition – General Instructions The second paragraph is changed to read: Report in Table III columns (fc) through (fi) only those access lines connecting end users with their end offices for switched services, i. e., all equivalent 4 kHz or 64 kbps access lines included in Table II columns (cc) through (cj). Report special access lines, including the closed end of WATS and FX, that provide access to an interexchange carrier or other access customer in Table III column (fj) or column (fk). Report Definition – Row Instructions The following row instructions are changed to read: 1. (fc) Single Line Business Switched Access Lines - Includes single line business access lines subject to the single line business interstate end user common line charge, pursuant to Section 69.104( h), excluding company official, and payphone lines. Payphone lines are to be reported in column (fe) - Multiline Business Switched Access Lines – Payphone Lines. The ratio of single line business access lines to total business access lines, as calculated from the data reported in Table III (i. e., column (fc) divided by the sum of columns (fc), (fd), and (fe)), should be consistent with the same ratio as calculated from the data reported in ARMIS Report 43- 01, Table II. 2. (fd) Multiline Business Switched Access Lines – Other than Payphone Lines - Include the total of analog and digital multiline business access lines subject to the multiline business interstate end user common line charge including PBX trunks, Centrex- CU trunks, 11 Federal Communications Commission DA 05- 3162 Summary of Changes APPENDIX FCC Report 43- 08 December 2005 Page 8 of 8 hotel/ motel LD trunks and Centrex- CO lines. Payphone lines are to be reported in column (fe) - Multiline Business Switched Access Lines – Payphone Lines. The ratio of multiline business access lines, including payphone lines, to total business access lines, as calculated from the data reported in Table III, (i. e., the sum of columns (fd) and (fe) divided by the sum of columns (fc), (fd), and (fe)), should be consistent with the same ratio as calculated from the data reported in ARMIS Report 43- 01, Table II. 3. (fe) Multiline Business Switched Access Lines – Payphone Lines - Lines that provide payphone service, i. e., total coin (public and semi- public) lines, including customer owned pay telephones (COPT). 12