Access Charge Reform; Price Cap Performance Review for Local Exchange Carriers; Transport Rate Structure

On December 23, 1996, the Commission adopted a Notice of Proposed Rulemaking in this docket, 62 FR 4670 (Jan. 31, 1997), seeking comment on how the interstate access charge regime should be revised in light of the local competition and Bell Operating Company entry provisions of the Telecommunications Act of 1996 and state actions to open local markets to competition, the effects of potential and actual competition on incumbent LEC pricing for interstate access, and the impact of the Act's mandate to preserve and enhance universal service. On May 7, 1997, the Commission adopted a First Report and Order, 62 FR 31040 (June 6, 1997), in which it adopted many of the rules it proposed. In this Second Order on Reconsideration, the Commission modifies some of the rules adopted in the First Report and Order. These rule revisions are intended to foster competition, move access charges over time to more economically efficient levels and rate structures, preserve universal service, and lower rates.