Implementation of Section 273(d)(5) of the Communications Act of 1934, as Amended by the Telecommunications Act of 1996; Dispute Resolution Regarding Equipment Standards

In order to implement a new statutory provision of the Telecommunications Act of 1996, the Commission adopts rules establishing a default dispute resolution process to be used when technical disputes arise between a non-accredited standards development organization (NASDO) and any party who funds the activities of the NASDO. Under the new rules, disputes will be resolved by a recommendation of a three-person expert panel, selected by both the disputing party and the NASDO, with the recommendation subject to disapproval by a vote of three-fourths of the other funding parties. As intended by Congress, this procedure ensures that disputes can be resolved in an open, non-discriminatory, and unbiased fashion within 30 days, and it will be used only when all of the parties are unable to agree on a process for resolving their disputes. In addition, persons who willfully refer frivolous disputes will be subject to forfeiture pursuant to section 503(b) of the Communications Act.