FCC Extends Deadline for Detariffing of Domestic Services and Adopts Detariffing Measures for International Services

On February 5, 2001, the FCC extended the transition period for interexchange carriers (IXCs or long distance carriers) to complete the detariffing process of domestic mass-market consumer services. (CC Docket No. 96-61). While the transition period has been extended several times in the past, it is now set to end on July 31, 2001.

The FCC's action follows on the heels of an April 28, 2000 decision from the United States Court of Appeals for the District of Columbia Circuit in which the Court rejected an appeal from MCI Worldcom and other interexchange carriers (IXCs or long distance carriers) challenging the FCC's 1996 Detariffing Order. MCI WorldCom, Inc., et al., v. Federal Communications Commission, 209 F.3d 760 (D.C. Cir. 2000). In doing so, the Court lifted a prior stay and upheld the FCC's Detariffing Order.

At the end of the transition period, long distance carriers with domestic interexchange tariffs on file with the FCC will be required to cancel these tariffs. Thereafter, two new public disclosure requirements will apply to detariffed domestic long distance service. Under the first requirement, long distance carriers will have to make available to any member of the public, in at least one location during regular business hours, current rates, terms and conditions for detariffed domestic interstate services. Under the second requirement, carriers which maintain Internet websites will have to make current rate and service information for detariffed domestic interstate services available online in a timely and easily accessible manner.

Additionally, on March 16, 2001, the FCC announced that it was adopting detariffing measures for international interexchange services as well. In its announcement, the FCC stated that "competitive conditions in the international market are now such that tariffs are no longer necessary to protect consumers and promote competition." Carriers providing such services will have to follow the same public disclosure requirements discussed above with regard to detariffed domestic service.

Tariff requirements will nonetheless continue to apply to a small category of carriers, such as those that are classified as dominant for reasons other than an affiliation with a foreign carrier that possess market power. Also, the FCC has retained tariff requirements for four types of international service for which it would be, as the FCC has described it, "impossible or impracticable for carriers to establish contractual relationships with customers." These four types of service are: (1) international dial-around services; (2) inbound international collect calls; (3) on-demand Mobile Satellite Services; and (4) services to new customers that choose their long distance provider through their local service provider (for the first 45 days of service or until there is a contract between the customer and the carrier, whichever occurs first).

While implementation of the FCC's domestic and international detariffing requirements is expected to have a significant impact on both carriers and end users alike, detariffing does not eliminate a common carrier's obligation not to discriminate against end users.

Elliott S. Cappuccio is an associate in the San Antonio office of Stumpf Craddock Massey & Pulman, P.C. (SCM&P). Mr. Cappuccio practices primarily in the fields of telecommunications law, commercial litigation, and consumer law.

SCM&P is a full-service law firm with practice areas that include, among others: Telecommunications; Internet; Corporate & Venture Structuring; IP Protection; Banking & Bankruptcy; Real Estate; and Commercial & Civil Litigation. In these areas, SCM&P represents CLECs, IXCs, ISPs, ESPs, ASPs, and many other providers and users of telecommunications services, equipment, and bandwidth.

SCM&P offers its clients a unique advantage over other law firms: we do not, have not, and will not represent the incumbent telecom monopolies. We are Counsel To The Competition.™