Teletruth filed on November 4th, 2002 in this open Docket --- "The Biennial Review" --- As you will read, everyone should be concerned that the FCC might rule to allow the Bells to no longer keep records of various sorts. I've also included the Bells' summary comments from their lobbying group, USTA, below. Bruce Kushnick, Chairman, Teletruth.

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Dear FCC Commissioners,

I just went through the "Biennial Review" materials, WC Docket Number 02-313. I've

attached below what the Bells' lobbying group and association, the USTA, is asking for ----

the removal of all documentation and accounting requirements, just to name a few items.

I consider this entire process an outrage and the FCC should immediately

halt this proceeding and start all over again. Record Shredding should be

illegal and not sanctioned by the FCC.

 

The FCC is in violation of every conceivable part of the Regulatory

Flexibility Act (as amended). It has gotten only 17 comments and reply

comments (6 from the same person) for one of the most important

discussions --- making sure that the Bell companies keep accurate accounting

books.

 

There was no effort on the part of the FCC to make sure that small

businesses were included in these discussions, a condition of the Reg. Flex Act.

 

Teletruth recently conducted a campaign in New Jersey, with phonebill

auditing firm LTC Consulting, to collect phonebills. We discovered that 50%

of all phonebills had mistakes -- mistakes that cost the customer money and

which they can file for a refund. ---- and it can be thousands of dollars.

 

The destruction of phonebill records would obviously be a violation of basic

accounting principles because these customers, who are entitled to refunds, some going

back years, would denied the proper safeguards and protections.

 

And the destruction of the continuing property records would also be a

travesty. The FCC's own auditors found $19 billion dollars of missing or

unverifiable equipment. This equipment inflated ALL telephone rates, not

to mention monies owed to the US public based on IRS/tax issues.

 

The FCC turned these audits over to the states and so far, the New York

Public Service Commission found $633 million of missing equipment -- and

that was only 1/4 of the audits needed.

 

Teletruth has active complaints filed in New York, New Jersey and

Massachusetts, as well as active complaints at the IRS and SEC on these

audit issues. How can the FCC even entertain the destruction of these

records when every customer is effected by the continued audits?

 

The Regulatory Flexibility Act requires the FCC to do an impact study on the

impacts their laws will have on small businesses -- and obviously, in this

case, the destruction of records harms every customer's right to a just and

reasonable settlement if the Bells are found to have wronged them. Without

ALL of this critical information, every customer loses their rights.

 

The lack of proper notification, the lack of an impact statement, the lack

of inclusion of every small business in the process of this important review

is enough for the FCC to redo this entire proceeding.

 

Below is the USTA's Comments. On whole, we reject every USTA claim. We

consider this nothing more than "Record Shredding" and loosening the

regulations on the Bells is a slap in the face of every customer that

expects the FCC to do its job and protect the customers rights.

Bruce Kushnick, Chairman,

For the Board of TeleTruth.

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(Readers Note: While most of this is in some legalese that is beyond comprehension by most humans, you can rest assured that if the USTA is asking for it, you should be opposed to it. Their requests essentially as the FCC to gut the current record keeping rules. )

NOTE: ILEC ---- local phone monopoly, Bell monopoly.

SUMMARY

The United States Telecom Association (USTA) is concerned that the purpose of the biennial review is not likely to be achieved because the Federal Communications Commission (Commission or FCC) has not eliminated unnecessary regulations identified in previous biennial reviews in a timely manner. USTA reminds the Commission of the statutory mandate that the Commission must aggressively eliminate unnecessary regulatory burdens on common carriers.

USTA believes that neither the report issued by the Commission to fulfill its year 2000 biennial regulatory review obligations1 nor the recommendations of Commission staff detailed in the 2000 Biennial Regulatory Review Updated Staff Report released concurrently provided adequate changes to the rules. Therefore, USTA recommends the following rules changes to eliminate unnecessary regulation:

Part 1. Limit the time to consider waiver requests and petitions for reconsideration to one

year. If such filings are not denied within one year, they should be deemed granted.

Part 1, Subpart J. Streamline the pole attachment rules contained in Subpart J in

accordance with USTA.s comments in the 2000 Biennial Review.

Part 20, Section 20.11. Deny requests to expand the rules to require reciprocal

compensation to CMRS providers for the traffic sensitive elements of their mobile network to switch or terminate local traffic to mobile customers, which originates on another carrier.s network. Incorporate subsidiary intercarrier compensation issues into the broader Intercarrier Compensation proceeding.

Part 32. USTA continues to support substantial reduction in the FCC's accounting

requirements and urges the FCC to move forward with the FCC's Phase III accounting

proceeding.

Part 42. Eliminate this section, except for Sections 42.10 and 42.11, which should be

moved to Part 61.

Part 43. Eliminate the ARMIS reports, or, in the alternative, continue to significantly

streamline the network reports as previously recommended by USTA.

1 The 2000 Biennial Regulatory Review, CC Docket No. 00-175, Report (rel. Jan. 17, 2001) (FCC Report).

2 Biennial Regulatory Review 2000, CC Docket No. 00-175, Updated Staff Report (Jan. 17, 2000) (Staff Report).

USTA Comments

WC Docket No. 02-313

WT Docket No. 02-310

October 18, 2002

Part 51. Resist any effort to apply these rules to ILEC provision of advanced services

and encourage the Commission to move forward with the Triennial Review.

Part 52. Adopt a cost recovery mechanism for local number portability costs borne by

non-LNP capable carriers.

Part 53. Delete Sections 53.203(a)(2) and 53.203(a)(3), which contain separate affiliate

requirements that prevent BOCs from offering consumers seamless, end-to-end service.

Part 54. Remove the requirement that service providers reimburse USAC for payments

or commitments made to ineligible entities for payments made for eligible services used in an

ineligible manner and refrain from revising the universal service definition. Clarify data

collection requirements for ICLS funding.

Part 61. Restructure Part 61 to include only tariff requirements and move the rules

associated with price cap regulation to a new Part XX and the rules associated with rate of return

regulation to Part 69. Permit all ILECs to file contract-based tariffs. Ensure that the tariff filing requirements are consistent with Section 204(a)(3) of the Act. Streamline the notice period to file corrections and extend the special permission period.

Part 64, Subpart A. Delete this Subpart.

Part 64, Subpart C. Delete this Subpart.

Part 64, Subpart E. Delete this Subpart.

Part 64, Subpart G. Delete this Subpart since all providers, except ILECs, are permitted

to bundle enhanced services.

Part 64, Subpart H. Delete this Subpart.

Part 64, Subpart I. Move toward eliminating this Subpart and revise the purpose and

recent efforts sections of the Staff Report.

Part 64, Subpart T. Eliminate the requirement that independent ILECs provide

interexchange service through a separate affiliate.

Part 65. Eliminate reporting requirements except when a lower formula adjustment is

filed and exclude services that are not subject to price cap regulation. Modify Section 65.700 to calculate the maximum allowable rate of return on all access elements in the aggregate and modify Section 65.702 to measure earnings on an overall interstate basis.