Sec. 20.13  State petitions for authority to regulate rates.

    (a) States may petition for authority to regulate the intrastate 
rates of any commercial mobile radio service. The petition must include 
the following:
    (1) Demonstrative evidence that market conditions in the state for 
commercial mobile radio services do not adequately protect subscribers 
to such services from unjust and unreasonable

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rates or rates that are unjustly or unreasonably discriminatory. 
Alternatively, a state's petition may include demonstrative evidence 
showing that market conditions for commercial mobile radio services do 
not protect subscribers adequately from unjust and unreasonable rates, 
or rates that are unjustly or unreasonably discriminatory, and that a 
substantial portion of the commercial mobile radio service subscribers 
in the state or a specified geographic area have no alternative means of 
obtaining basic telephone service. This showing may include evidence of 
the range of basic telephone service alternatives available to consumers 
in the state.
    (2) The following is a non-exhaustive list of examples of the types 
of evidence, information, and analysis that may be considered pertinent 
to determine market conditions and consumer protection by the Commission 
in reviewing any petition filed by a state under this section:
    (i) The number of commercial mobile radio service providers in the 
state, the types of services offered by commercial mobile radio service 
providers in the state, and the period of time that these providers have 
offered service in the state;
    (ii) The number of customers of each commercial mobile radio service 
provider in the state; trends in each provider's customer base during 
the most recent annual period or other data covering another reasonable 
period if annual data is unavailable; and annual revenues and rates of 
return for each commercial mobile radio service provider;
    (iii) Rate information for each commercial mobile radio service 
provider, including trends in each provider's rates during the most 
recent annual period or other data covering another reasonable period if 
annual data is unavailable;
    (iv) An assessment of the extent to which services offered by the 
commercial mobile radio service providers the state proposes to regulate 
are substitutable for services offered by other carriers in the state;
    (v) Opportunities for new providers to enter into the provision of 
competing services, and an analysis of any barriers to such entry;
    (vi) Specific allegations of fact (supported by affidavit of person 
with personal knowledge) regarding anti-competitive or discriminatory 
practices or behavior by commercial mobile radio service providers in 
the state;
    (vii) Evidence, information, and analysis demonstrating with 
particularity instances of systematic unjust and unreasonable rates, or 
rates that are unjust or unreasonably discriminatory, imposed upon 
commercial mobile radio service subscribers. Such evidence should 
include an examination of the relationship between rates and costs. 
Additionally, evidence of a pattern of such rates, that demonstrates the 
inability of the commercial mobile radio service marketplace in the 
state to produce reasonable rates through competitive forces will be 
considered especially probative; and
    (viii) Information regarding customer satisfaction or 
dissatisfaction with services offered by commercial mobile radio service 
providers, including statistics and other information about complaints 
filed with the state regulatory commission.
    (3) Petitions must include a certification that the state agency 
filing the petition is the duly authorized state agency responsible for 
the regulation of telecommunication services provided in the state.
    (4) Petitions must identify and describe in detail the rules the 
state proposes to establish if the petition is granted.
    (5) States have the burden of proof. Interested parties may file 
comments in support or in opposition to the petition within 30 days 
after public notice of the filing of a petition by a state under this 
section. Any interested party may file a reply within 15 days after the 
expiration of the filing period for comments. No additional pleadings 
may be filed. Except for Sec. 1.45 of this chapter, practice and 
procedure rules contained in Secs. 1.42-1.52 of this chapter shall 
apply. The provisions of Secs. 1.771-1.773 of this chapter do not apply.
    (6) The Commission shall act upon any petition filed by a state 
under this paragraph not later than the end of the

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nine-month period after the filing of the petition.
    (7) If the Commission grants the petition, it shall authorize the 
state to regulate rates for commercial mobile radio services in the 
state during a reasonable period of time, as specified by the 
Commission. The period of time specified by the Commission will be that 
necessary to ensure that rates are just and reasonable, or not unjustly 
or unreasonably discriminatory.
    (b) States that regulated rates for commercial mobile services as of 
June 1, 1993, may petition the Commission under this section before 
August 10, 1994, to extend this authority.
    (1) The petition will be acted upon by the Commission in accordance 
with the provisions of paragraphs (a)(1) through (a)(5) of this section.
    (2) The Commission shall act upon the petition (including any 
reconsideration) not later than the end of the 12-month period following 
the date of the filing of the petition by the state involved. Commercial 
mobile radio service providers offering such service in the state shall 
comply with the existing regulations of the state until the petition and 
any reconsideration of the petition are acted upon by the Commission.
    (3) The provisions of paragraph (a)(7) of this section apply to any 
petition granted by the Commission under this paragraph.
    (c) No sooner than 18 months from grant of authority by the 
Commission under this section for state rate regulations, any interested 
party may petition the Commission for an order to discontinue state 
authority for rate regulation.
    (1) Petitions to discontinue state authority for rate regulation 
must be based on recent empirical data or other significant evidence 
demonstrating that the exercise of rate authority by a state is no 
longer necessary to ensure that the rates for commercial mobile are just 
and reasonable or not unjustly or unreasonably discriminatory.
    (2) Any interested party may file comments in support of or in 
opposition to the petition within 30 days after public notice of the 
filing of the petition. Any interested party may file a reply within 15 
days after the time for filing comments has expired. No additional 
pleadings may be filed. Except for 1.45 of this chapter, practice and 
procedure rules contained in Sec. 1.42-1.52 of this chapter apply. The 
provisions of Secs. 1.771-1.773 of this chapter do not apply.
    (3) The Commission shall act upon any petition filed by any 
interested party under this paragraph within nine months after the 
filing of the petition.