Reminder UPdate: Select Upcoming FCC Regulatory Deadlines

Washington, D.C., January 10, 2012- The FCC imposes a number of filing requirements on common carriers and on other related telecommunications companies.  Some of these requirements have annual deadlines; others have deadlines systematically throughout the year. Penalties and late fees for non-compliance with these and other FCC deadlines can be significant, so regulatory compliance is critical. This is a reminder of certain upcoming deadlines; it is not intended to be a comprehensive list of all regulatory filing requirements or deadlines nor is it legal advice.  This list does not include any state regulatory filing requirements. We are pleased to provide information regarding other filing requirements at the federal level and filing requirements for any state upon request. Click to read more.

FCC Alert: IP Conferencing Providers Be Warned - Contribute to USF

Washington, D.C., November 14, 2011 -   On November 3, the FCC issued an Order denying MeetingOne.com Corp.’s review of a decision by the Universal Service Administrative Company (USAC) finding that the IP bridging services offered by MeetingOne are subject to federal universal service fund (USF) reporting and contribution obligations both prospectively and retrospectively. Therefore, MeetingOne is required to contribute to USF beginning with their fourth quarter 2008 revenues. Click to read more.

FCC Alert: Non-Interconnected VoIP Providers Must File 499-A & Contribute to TRS Fund

Washington, D.C., October 18, 2011 - On October 11, the FCC adopted rules requiring interconnected and non-interconnected VoIP providers to participate in and contribute to the Telecommunications Relay Services (TRS) Fund, to register with the FCC, and to file an annual FCC Form 499-A

Interconnected VoIP providers have been required to contribute to the TRS Fund since 2007 via the required annual filing of a499-A form. However, non-interconnected VoIP providers have not been required to contribute or file an FCC Form 499-A until now.  Click to read more.

New E911 Rules Take Effect Next Week

Washington, D.C., October 11, 2011 - The FCC has published new rules, which take effect on November 28, 2011, in the Federal Register designed to more easily monitor an individual’s location via their personal communications devices. The purpose of the location technology rules is to find an individual’s location in an emergency situation. Some of the rules take effect immediately and require carriers to have a tougher testing process and better location-finding accuracy. However, other rules will be phased in over multiple years. The FCC is also seeking comment on a number of accuracy requirements related to the extent of the regulations and specifically how they relate to VoIP, cellular, and WiFi. Click to read more.

Select Upcoming FCC Regulatory Deadlines

Washington, D.C., October 7, 2011 - The FCC imposes a number of filing requirements on common carriers and on other related telecommunications companies.  Some of these requirements have annual deadlines; others have deadlines systematically throughout the year. Penalties and late fees for non-compliance with these and other FCC deadlines can be significant, so regulatory compliance is critical. This is a reminder of certain upcoming deadlines; it is not intended to be a comprehensive list of all regulatory filing requirements or deadlines nor is it legal advice.  This list does not include any state regulatory filing requirements. We are pleased to provide information regarding other filing requirements at the federal level and filing requirements for any state upon request. Click to read more.

FCC Cracks Down on Prepaid Calling Card Providers

Washington, D.C., September 14, 2011 - At the beginning of the month, the FCC announced proposed $5 million forfeitures for each of five companies for violating Section 201(b) of the Communications Act by using deceptive marketing practices to sell prepaid calling cards, cards that target mostly low-income and minority communities. Section 201(b) of the Communications Act requires that “all charges, practices, classifications, and regulations for and in connection with [interstate or foreign] communication service, shall be just and reasonable …”  The FCC considers unfair and deceptive marketing to be an unjust and unreasonable practice that violates the Communications Act. Click to read more.

"Hacking" - Has the True Meaning Been Distorted?

Washington, D.C., August 18, 2011 - Legislation pending in the U.S. House of Representatives would require mobile carriers to detail their "guaranteed minimum" data speeds and their network reliability statistics to potential customers. Sponsors of the New Generation Wireless Disclosure Act, such as Rep. Anna Eshoo (D-CA), say that the Act would give mobile customers more information about new 4G services. Click to read more.

Universal Broadband?: FCC Looks to Reform ICC, USF

By: Craig Dingwall
Originally Published in Channel Partners Magazine in March 2011

The FCC recently released a lengthy Notice of Proposed Rulemaking (“NPRM") in which it proposed modernizing and streamlining universal service and intercarrier compensation (“ICC") to promote affordable wired and wireless broadband to all Americans.
If adopted, the FCC’s proposals would over time shift the focus of ICC and the $8 billion Universal Service Fund (“USF") from promoting affordable phone service to promoting affordable broadband service.

The FCC proposes to replace explicit support provided by the current high-cost USF and implicit support from ICC subsidies, with a Connect America Fund (“CAF") that strives to be more efficient and do a better job of promoting affordable broadband.

Noting that the “current rules actually disincentivize ... the transition from analog circuit-switched networks to IP networks," the FCC sought comment on the following four “reform" proposals designed to promote better use of Universal Service funds and broadband deployment:

• Modernize the USF and ICC for broadband to make affordable broadband available to all Americans and accelerate the transition from circuit switched to IP networks;
• Ensure fiscal responsibility by controlling the USF size as it transitions to support broadband, including by reducing waste and inefficiency;
• Demand accountability from companies receiving USF support to ensure that public investments deliver intended results; and
• Adopt market-driven policies that encourage technologies and services that maximize the value of scarce program resources and benefits.

The FCC also requested comments on many other issues, including simplifying and unifying the USF into a single, streamlined CAF, and gradually eliminating per-minute intercarrier charges. The FCC is also considering reforming intrastate access charges and wireless termination charges, as well as possibly unifying all intercarrier rates, including those for intrastate calls, under the reciprocal compensation framework. If implemented, the CAF would ultimately make explicit all implicit ICC subsidies necessary to serve an area.

The FCC’s proposed competitive bidding, reverse-auction process would allow broadband service bidders to complete, build out and operate broadband networks in unserved areas across the country. A National Broadband Map would identify areas that currently lack broadband, and presumably the low-cost bidder would win the reverse auction to build out and serve one or more of these areas within a specified time period, such as three years. The FCC is also seeking comments on whether the broadband service obligation should be defined as a minimum of 4 megabits per second (Mbps) downstream and 1 Mbps upstream, or whether other metrics should be used.

Evergreen Clauses - Are They Enforceable?

Originally Published January 2010 - From an agent’s perspective, including evergreen clauses, which ensure continuing commission payments for the life of the customer, in its agreements with carriers and master agents seems like a good idea. But are they enforceable? As with most legal issues, that depends on many factors, including the contract language and the governing law.

Contract Language. An evergreen clause may extend agent commission payments and typically provide for continuing commission payments on agent-generated revenues following the expiration or termination of the agent agreement. In simple terms, and in our view, an evergreen clause simply means that as long as the carrier gets paid by a customer that the agent generated, the agent gets paid the commission to which he/she is entitled. Click to read more.

AT&T/T-Mobile: Putting Humpty Dumpty Back Together?

Published: March 30, 2011 - Will AT&T’s proposed merger with T-Mobile improve service and solve a looming spectrum crunch or will it stifle competition by reducing the number of nationwide wireless providers and consolidating spectrum of two large carriers? That’s the $39 billion merger question now before federal and state regulators.

If approved, the proposed merger would create the nation’s largest mobile carrier, with over 129 million subscribers using a GSM-based network with a likely transition to a Long Term Evolution  (LTE) network. AT&T claims that this deal extends its LTE coverage plans to an additional 46.5 million Americans, covering 95 percent of the nation. Critics point out that this merger will stifle competition and further concentrate an already highly concentrated industry, which the FCC noted in its May 2010 Mobile Wireless Competition Report (Wireless Report) is not "effectively competitive." The FCC also found that the Herfindahl-Hirschman Index (HHI), which is used to determine mobile wireless service provider concentration, has increased by 697 (from 2151 to 2848) since from 2003 to 2008. Fewer competitors and more subscriber shares result in higher HHI index values, and DOJ antitrust merger scrutiny is typically applied to an increase in the HHI of 50 or greater when the post-merger HHI is above 1800. Click to read more.

Universal Service Facelift?

Published March 22, 2011 - Last month the FCC sought comments on whether the Universal Service Fund (USF) should support broadband. Earlier this month the FCC announced plans to modernize and drive tougher accountability measures into the Lifeline/Link Up program, which is the part of the USF that provides low-income households with discounts on monthly phone bills and initial installation charges. Lifeline provides discounts of approximately $10 per month on telephone service for low-income households; Link Up provides discounts of up to $30 per household on wired or wireless connection charges. The program has grown significantly, having provided $1.3 billion in support in 2010, compared to an inflation-adjusted $221 million in support to low-income households in 1997. Lifeline/Link Up does not, however, currently support broadband, so the FCC is considering, among other things, whether it should amend the Lifeline definition to explicitly allow support for broadband. Click to read more.

Broadband Priority Lanes: Super Toll Road or Road to Abilene?

Published August 16, 2010 - Verizon’s and Google’s CEOs recently announced a suggested broadband legislative framework for consideration by lawmakers, with seven key elements. As summarized on Google’s public policy blog, they are:

• make the FCC’s current wireline broadband openness principles fully enforceable;
• adopt a new prohibition against discriminatory practices prioritizing or favoring lawful Internet content or traffic;
• create enforceable transparency rules to give consumers information about offered services, and broadband providers would provide information about network management practices;
• the FCC would enforce openness policies using a complaint-driven process;
• allow broadband providers to offer additional, differentiated online services;
• exempt wireless from “most of the wireline principles”, except for the transparency requirement, and
• focus the Federal Universal Service Fund (“USF”) on deploying broadband in areas where it is not now available. A more detailed summary of these seven principles is available here.

Broadband Update: The Devil is in the Details

Published July 28, 2010 - The FCC recently concluded in its Sixth Broadband Deployment Report that between 14 and 24 million Americans still lack access to broadband or "advanced telecommunications capability" that enables users to originate and receive high-quality voice, data, graphics, and video telecommunications using any technology. The FCC, in its July 20th Report, estimates that 1,024 out of 3,230 counties in the United States and its territories are unserved by broadband and, on average, these unserved areas are home to 24 million Americans living in 8.9 million households with a population density of 138.3 people per square mile and a per capita income of $14,565 measured in 1999 dollars. The FCC’s estimates of broadband availability are based primarily on the Model that FCC staff created in conjunction with the development of the National Broadband Plan, and the broadband subscribership data the FCC collects on FCC Form 477. Click to read more.

Broadband: Back to the Future

Published July 26, 2010 - Last week we wrote the first of a series of articles about broadband deployment, and offered suggestions to help foster and develop rural broadband through stimulus and Universal Service funds, municipal broadband projects and competitive bidding.  In this article, we review the current status of broadband deployment in light of the recent Comcast Decision and the FCC’s proposed National Broadband Plan.   Click to read more.

Rural Broadband: Miles to Go Before We Sleep

Published July 16, 2010 - As the United States recovers from the great recession, it is even more critical to focus on broadband deployment to ensure that Americans have the necessary tools to compete worldwide.   This is the first of a series of articles that addresses broadband deployment, with recommendations for its improvement. This article focuses on rural broadband deployment. Click to read more.