Informational Presentation by: ACTA Director, and ACTA Co-sponsors (ATIS & TIA)

1. An Overview of theAdministrative Council for Terminal Attachments (ACTA)The Federal Communications Commission’s Privatization of Certain 47 CFR Part 68 Responsibilities Informational Presentation by: ACTA Director, and ACTA Co-sponsors (ATIS & TIA)

2. Part 68: Biennial Review • The Telecommunications Act of 1996 directed the Federal Communications Commission (FCC) to review its rules every even-numbered year and repeal or modify those found to be no longer in the public interest • Because of the rapid pace of change in both network and telephone equipment technologies, the FCC found it increasingly difficult for the regulatory process to keep pace thus creating a public disservice

3. Part 68: Privatization • Pursuant to the Report and Order, CC Docket No. 99-216, FCC 00-400, the FCC minimized the government’s role in Part 68 by privatizing significant portions of its rules governing the connection of customer premises equipment (telephone equipment) to the public switched telephone network and certain private-line services, and privatized the standards development and terminal equipment approval processes

4. Part 68: Privatization • To ensure continued uniformity and a level playing field, the FCC mandated the establishment of the Administrative Council for Terminal Attachments (ACTA) to assume functions privatized • ACTA was formed through the co-sponsorship and support of the Alliance for Telecommunications Industry Solutions (ATIS) and Telecommunications Industry Association (TIA) • ACTA held its Inaugural Meeting on May 2, 2001 • ACTA adopted technical criteria covering the 130 pages of Part 68 criteria privatized by the Commission, on July 11, 2001 • ACTA adopted industry-developed product labeling requirements, on July 11, 2001 • ACTA assumed complete control over the database of approved Part 68 equipment, on August 1, 2001

5. Administrative Council: Structure ACTA was established as: • A non-governmental telecommunications industry driven entity not controlled or dominated by any particular industry segment • Impartial, fair, balanced, and open • Representing all segments of the industry, including: • Local Exchange Carriers (LEC) • Interexchange Carriers (IXC) • Terminal Equipment Manufacturers (TEM) • Network Equipment Manufacturers (NEM) • Test Laboratories (LAB), and • Other Interested Parties (OIP)

6. Administrative Council: Mission & Scope • The ACTA mission is to: (1) adopt technical criteria for terminal equipment to prevent network harms (as defined in §68.3) through the act of publishing such criteria developed by the American National Standards Institute (ANSI) accredited Standards Development Organizations (SDO); and (2) establish and maintain database(s) of equipment approved as compliant with the technical criteria • The scope of ACTA involves the coordination and management role for the adoption and publication of technical requirements for terminal equipment, and the associated database(s) • Note, the Administrative Council does not make substantive technical decisions regarding the development of technical criteria

7. Administrative Council: Responsibilities • As mandated by the FCC, ACTA must perform its responsibilities in an equitable and nondiscriminatory manner. They include: • Adopt technical criteria submitted from ANSI-accredited SDO or committees • Provide 30-day public notice to inform industry of proposed technical criteria • Operate and maintain an accurate database of compliant equipment • Establish and maintain an appropriate labeling methodology • Respond to inquiries from the public regarding its technical criteria

8. Administrative Council: Responsibilities ACTA Responsibilities (cont): • Manage such other tasks as necessary and within the Council’s scope that were formerly part of the FCC’s Part 68 functions • Ensure that the management, activities, and decisions of the Council are independent from all external influences • Coordinate, if necessary, which industry SDOs will take on a particular development project

9. Administrative Council: Standards • Any ANSI-accredited SDO observing ANSI consensus decision-making procedures may establish technical criteria and submit such criteria to the ACTA for adoption. Active SDOs include: • ATIS Sponsored T1 Committee T1E1 • TIA Committee TR41 • ACTA must publish the submitted criteria as technical criteria for terminal equipment • On publication, the Commission considers the technical criteria to be presumptively valid, i.e., enforceable under federal law

10. Administrative Council: Standards • SDOs submitting criteria to ACTA must certify, in writing, that:  •  it is ANSI-accredited to the Standards Committee Method or the Organization Method • the technical criteria does not conflict with any published technical criteria or with any technical criteria submitted and pending for publication • the technical criteria is limited to preventing harms to the PSTN, identified in §68.3 of Part 68; and • the criteria were developed in accordance with ANSI requirements for consensus and due process.

11. Administrative Council: Appeals • Individuals and entities possessing directly and materially affected interests and believing that they have been or will be adversely affected by the actions or inaction of the ACTA shall have the right to appeal such action or inaction; however, • Appeals relating to the activities of a SDO submitting technical criteria to the ACTA, must utilize the appeals processes afforded by that SDO, the ANSI if applicable, or alternatively, the FCC • In the case of action or inaction appropriate for the ACTA appeals process, individuals and entities are encouraged to first approach the ACTA leadership with an informal complaint before pursuing the official appeals process

12. Administrative Council: Approval Methods • Terminal equipment connected to the public network or certain private-line services requiring such approval, must comply and shall continue to comply with the applicable Part 68 rules and regulations and with the applicable ACTA-adopted technical criteria, labeling requirements, and customer information requirements • Two approval methods are recognized: • Telecommunications Certification Body (TCB): • Must follow FCC Rules governing the TCB Program • Must submit copy of certificate to ACTA • Supplier’s Declaration of Conformity (SDoC): • SDoC is a procedure where the Responsible Party, as defined in §68.3, makes measurements or takes other necessary steps to ensure that the terminal equipment complies with the appropriate technical standards

13. Administrative Council: SDoC Method • Entities utilizing the SDoC process must provide: • the identification and a description of the Responsible Party for the SDoC and the product, including the model number of the product, • a statement that the terminal equipment conforms with applicable technical requirements, and a reference to the technical requirements, • the date and place of issue of the declaration, • the signature, name and function of person making declaration, • a statement that the handset, if any, complies with §68.316 defining hearing aid compatibility, or that it does not comply with that section, • any other information required to be included in the SDoC by the Administrative Council of Terminal Attachments

14. Administrative Council: SDoC Method • Responsible Parties for a SDoC shall maintain records containing: • A copy of the Supplier’s Declaration of Conformity • The identity of the testing facility, including the name, address, phone number and other contact information • A detailed explanation of the testing procedure utilized to determine whether terminal equipment conforms to the appropriate technical criteria • A copy of the test results for terminal equipment compliance with the appropriate technical criteria • A description of the measurement facilities employed for testing the equipment must be compiled and shall contain the information required to be included by the ACTA

15. Administrative Council: Database • The continuation of a uniform, nationwide database is essential to protecting public interests • ACTA maintains an accurate database that is readily available and accessible to the public including persons with disabilities. The database: • Permit interested parties such as the FCC, U.S. Customs, and providers of telecommunications services to track and identify suppliers or importers of non-compliant equipment • Ameliorate concerns regarding the potentially adverse impact of non-compliant terminal equipment on the public network by ensuring that suppliers are held accountable for any damage their equipment may cause • Provide the public with the means to identify the party ultimately responsible for the product

16. Administrative Council: Database • Entities submitting information to the database, whether they obtained their approval from a TCB or utilized the SDoC process, mustsubmit pertinent information regarding the identity of the Responsible Party and approved equipment to the ACTA database administrator and shall assure that ACTA-specified product information is available for retrieval from the database, via the publicly-available interface, prior to the connection of such product to the PSTN or certain private-line services that require such approval • The Part 68 database currently contains over 35,000+ entries http://www.part68.org