Safeguards To Improve Administration of the Interstate Access Tariff and Revenue Distribution Processes

The Federal Communications Commission (``FCC'' or ``Commission'') has adopted a Report and Order and Order to Show Cause (``Order'') adopting new rules to reform the interstate access tariff and revenue distribution processes administered by the National Exchange Carrier Association, Inc. (``NECA''). The Order amends the rules to include five directors from outside the local exchange carrier (``LEC'') industry on NECA's Board of Directors. The Order adopts additional measures to increase NECA and LEC accountability to the FCC, and strengthen NECA's internal operations. In addition, the Order directs NECA to show cause why it should not be required to amend its incentive compensation plan to eliminate any incentive based upon common line or traffic sensitive pool earnings, or that might otherwise induce NECA officers or employees to violate Commission requirements. The FCC adopted this Order to assure that NECA [[Page 19529]] administers the interstate access tariff and revenue distribution processes in accordance with FCC rules.