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 Federal  Communications  Commission  FCC  03-  11 
 Before  the  Federal  Communications  Commission 
 Washington,  D.  C.  20554 


 In  the  Matter  of 
 National  Exchange  Carrier  Association  Tariff  FCC  No.  5,  Transmittal  No.  951 
 )  ) 
 )  WC  Docket  No.  02-  340  ) 
 ) 


 ORDER 
 Adopted:  January  23,  2003  Released:  January  24,  2003 
 By  the  Commission: 
 1.  On  September  4,  2002,  the  Wireline  Competition  Bureau  (Bureau)  released  an  order  that  suspended  for  five  months  and  set  for  investigation  the  above-  referenced  tariff 
 transmittal.  1  This  transmittal  sought  to  revise  existing  security  deposit  provisions  of  the  National  Exchange  Carrier  Association  (NECA)  interstate  access  tariff  and  to  shorten  the  notice  period  for 
 refusal  or  discontinuance  of  service  contained  in  that  tariff.  On  October  31,  2002,  the  Bureau  designated  issues  for  investigation.  2 


 2.  On  December  23,  2002,  the  Commission  released  a  policy  statement  responding  to  a  petition  filed  by  Verizon  asking,  among  other  things,  that  the  Commission  permit  carriers  to 
 revise  their  tariffs  to  require  advance  payments,  security  deposits,  and  shorter  notice  periods  to  protect  against  the  risk  of  nonpayment.  3  The  Policy  Statement  was  intended  to  provide  general 
 guidance  to  incumbent  LECs  seeking  to  revise  the  deposit  and  payment  provisions  of  their  interstate  access  tariffs.  Based  on  the  record  developed  in  that  proceeding,  the  Commission 
 found  that  that  the  additional  deposit  revisions  that  Verizon  sought  in  its  petition,  which  were  similar  to  those  proposed  by  NECA,  were  not  narrowly  tailored  to  meet  the  incumbent  LECs’ 
 need  for  additional  protection  against  nonpayment  without  imposing  undue  burdens  on  access  customers  in  general.  4  The  Commission  was  particularly  concerned  about  the  potential  for 


 1  National  Exchange  Carrier  Association,  Tariff  FCC  No.  5,  Transmittal  No.  951,  Order,  17  FCC  Rcd  16532 
 (WCB/  Pricing,  rel.  Sept.  4,  2002). 
 2  National  Exchange  Carrier  Association,  Tariff  FCC  No.  5,  Transmittal  No.  951,  Order,  WC  Docket  No.  02- 
 340,  DA  02-  2948  (WCB/  Pricing,  rel.  Oct.  31,  2002). 
 3  Verizon  Petition  for  Emergency  Declaratory  and  Other  Relief,  Policy  Statement,  WC  Docket  No.  02-  202,  FCC 
 02-  337  (rel.  Dec.  23,  2002)  (Policy  Statement). 
 4  Id.  at  para.  6. 
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 Federal  Communications  Commission  FCC  03-  11 
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 discriminatory  application  and  the  lack  of  evidence  demonstrating  that  current  uncollectibles  pose  a  unique  threat  warranting  the  burdensome  deposits  sought  by  the  incumbent  LECs.  5  The 
 Policy  Statement  also  suggested  possible  tariff  provisions  to  address  the  risk  of  nonpayment.  6 
 3.  NECA  withdrew  Transmittal  No.  951  on  January  14,  2003.  7  This  withdrawal  rendered  moot  the  investigation  of  the  NECA  tariff. 


 4.  ACCORDINGLY,  IT  IS  ORDERED  that,  pursuant  to  section  204  of  the  Communications  Act  of  1934,  as  amended,  47  U.  S.  C.  §  204,  the  investigation  imposed  by  the 
 Wireline  Competition  Bureau  in  WC  Docket  No.  02-  340  with  respect  to  the  National  Exchange  Carrier  Association,  Tariff  FCC  No.  5,  Transmittal  No.  951,  IS  TERMINATED. 


 FEDERAL  COMMUNICATIONS  COMMISSION 


 Marlene  H.  Dortch  Secretary 


 5  Id.  at  para.  14. 
 6  Id.  at  para.  26. 
 7  National  Exchange  Carrier  Association,  Tariff  FCC  No.  5,  Transmittal  No.  967,  filed  January  14,  2003. 
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