The Pay Telephone Reclassification and Compensation Provisions of the Telecommunications Act of 1996

By this document, we consider four petitions for reconsideration of our Report and Order which established detailed rules (the "rules" or "Payphone Compensation Rules") ensuring that payphone service providers (PSPs) are "fairly compensated" for each and every completed payphone-originated call. This Order on Reconsideration does not change the compensation framework adopted last year, but rather refines and builds upon its approach. The Commission provides guidance on the types of contracts that it would deem to be reasonable methods of compensating PSPs, extends the time period that carriers must retain certain payphone records, and clarifies the rules' reporting, certification, and audit requirements.