FCC proposes eliminating tariff filing

The Federal Communications Commission adopted a proposal last week to eliminate the need for non-dominant carriers to file tariffs and to implement geographic rate averaging. The notice of proposed rulemaking will keep non-dominant carriers from filing tariffs for any of their services. "Non-dominant carriers file 10,000 tariffs each year, amounting to 4 million pages per year," said Regina Keeney, chief of the FCC's Common Carrier Bureau. The Telecommunications Act of 1996 gives the FCC forbearance authority, meaning that the commission is not required to apply any FCC regulation or provision of the 1934 Communications Act to the carrier market. This marks the first time the FCC is using its forbearance authority. One non-dominant carrier is concerned about the effect of removing tariffs. "The elimination of tariffs for non-dominant carriers will be much too disruptive for users and carriers," said Andy Lipman, senior vice president of legal and regulatory affairs at MFS Communications. "To immediately pull the plug on over a century of tariff processes will make service contracts a burdensome and cumbersome procedure that can only help the incumbent carrier," Lipman said. MFS would support voluntary tariff filing, he said. The geographic rate averaging requirements of the rulemaking notice would let rural customers pay the same rates as customers in urban areas. Rate averaging is a requirement of the telecom reform act. The FCC also is seeking comment on whether to allow non-dominant carriers to bundle customer premises equipment with services. Non-dominant carriers now are restricted from doing so.