Telecom Law Monitor : Washington D.C. Telecom Lawyer & Attorney : Kelley Drye & Warren Law Firm : New York, Chicago, Connecticut, New Jersey, Brussels

With the Universal Service Fund continuing to grow and the USF contribution factor skyrocketing to nearly 18%, the federal Universal Service Fund remains a critical area for all telecommunications providers. Customers increasingly are focusing on the USF surcharge in negotiations, and the competitive consequences of over- or under- reporting USF directly affect the company’s bottom line.

In this annual webinar, Kelley Drye will walk you through the USF changes you need to know, with an eye toward what to expect in 2012. We also will discuss the audit and appeal process in detail, including the differences between USAC and Inspector General audits. Our speakers will offer analysis and practical advice based on front line experience in audits and appeals, and years of providing compliance and enforcement advice in this area.

The following topics will be addressed:

• The 2012 USF Reform Agenda -- High Cost (CAF) and Low-Income (Lifeline)
   
• Changes to the 2012 Form 499A and instructions
   
• Significant USF Appeals in 2011
   
• Developments in the USF Audit and FCC Appeal Process

Kelley Drye Speakers: 

Steve Augustino, Partner
John Heitmann, Partner

When: 
March 13, 2012, 12:00PM - 1:00 PM

Where: 
Webinar

RSVP: 
This webinar is free of charge. Presentation slides and a recording of the webinar will be available to registrants. Email dcevents@kelleydrye.com or contact Cassidy Russell at 202.342.8400.


 

• Email This
• Print
• Trackbacks
• Share Link

All telecommunications carriers and interconnected VoIP providers must file an annual report certifying their compliance with the Federal Communications Commission’s (FCC) rules regarding Customer Proprietary Network Information (CPNI).  The report covers calendar year 2011 and must be filed with the FCC by March 1, 2012.  Providers may file CPNI certifications via an FCC web application or via ECFS, mail or hand delivery.

The FCC’s Enforcement Bureau actively enforces the filing requirement, and proposes fines for failure to file the certification at approximately this time every year.  Any company that submits USF revenue reports should ensure that it is in compliance with the CPNI certification requirement.

• Email This
• Print
• Trackbacks
• Share Link

On February 16, 2012, Kelley Drye & Warren LLP hosted the seminar and audiocast, “Privacy in 2012: What to Watch Regarding COPPA, Mobile Apps, and Evolving Law Enforcement and Public Policy Trends.” The seminar highlighted regulatory and legislative developments in privacy and information security during the past year, with an emphasis on children's online privacy and mobile applications.

Peter Swire, a professor at The Ohio State University Michael E. Moritz College of Law and a Senior Fellow with the Center for American Progress, opened the seminar with a keynote address that gave historical context to the most recent regulatory efforts addressing consumer privacy. Professor Swire’s remarks were followed by two panel sessions that included six experts representing key industry representatives and the federal agencies integral to recent privacy initiatives. The first panel discussed children's online privacy and the Federal Trade Commission’s proposed revisions to the Children's Online Privacy Protection Rule. The second panel discussed various consumer privacy enforcement and regulatory initiatives relating to mobile apps.

For more on the seminar, including a synopsis of key takeaways, see the Kelley Drye client advisory. An audio recording of the full program is also available.

• Email This
• Print
• Trackbacks
• Share Link

As we've discussed, today the FCC adopted rules to require interconnected VoIP providers to report network outages to the FCC.  The text of the FCC's order has not been released, but the order adopts a much narrower outage reporting requirement than originally proposed.  Under the new rules, interconnected VoIP providers will be required to report "hard" outages -- inabilities to complete calls -- that meet thresholds also applicable to traditional telecom services.  This decision continues the trend to treat interconnected VoIP the same as traditional TDM voice services, at least with respect to its obligations.

• Email This
• Print
• Trackbacks
• Share Link

The Federal Communications Commission ("FCC" or "Commission") released an Order on February 6, 2012 to comprehensively reform the low-income program of the Universal Service Fund to eliminate Link Up in non-Tribal areas; impose uniform eligibility, certification and verification requirements in part through the use of duplicates and eligibility databases; begin the process of modernizing the program to shift to supporting broadband and constrain the growth of the $2.1 billion low-income fund by $200 million in 2012 and by an estimated $2 billion over the next three years. Many of the new rules will be effective 30 days after publication of the Order in the Federal Register, however, there will be important deadlines for eligible telecommunications carriers ("ETCs") throughout the year. At the same time, the FCC released a Further Notice of Proposed Rulemaking ("FNPRM") seeking comment on a number of issues presented by its reform of the program. Comments and reply comments on the issues raised in the FNPRM are due 30 days and 60 days, respectively, after publication of the FNPRM in the Federal Register.

Click here to read the Kelley Drye Client Advisory outlining the entire Order.

• Email This
• Print
• Trackbacks
• Share Link

Yesterday, the FCC released its proposed budget for fiscal year 2013 (beginning in October 2012).  The budget offers a few interesting insights into the balance of the FCC's functions.  It also offers a preview of what to expect with the FCC's regulatory fees, which are due in September of each year.  See below for more.

• Email This
• Print
• Trackbacks
• Share Link

VoIP providers, prepare to report outages to the FCC.  Since early in 2010, the FCC has been on a path to impose new outage reporting obligations on providers of interconnected VoIP services, despite industry opposition to the new requirements.  Today, the FCC released its "Sunshine Notice" confirming that it will vote on an order to adopt reporting requirements at its February 15th open meeting.  Here is how it described the VoIP item:

The Commission will consider a Report and Order to extend outage reporting under
Part IV of the rules to interconnected Voice over Internet Protocol (VoIP) service providers. Extended reporting will enable the Commission to fulfill statutory E9-1-1 obligations and help protect the growing number of Americans who rely on VOIP phone service.

The FCC notice is available at this link.  On the 15th, interested persons may view the FCC meeting at this link.

• Email This
• Print
• Trackbacks
• Share Link

This post was drafted by Chip Yorkgitis and Josh Guyan.

On Friday, February 3, 2012, the FCC's Wireline Competition Bureau and Wireless Telecommunications Bureau jointly released an order revising and clarifying certain aspects of the sweeping universal service and intercarrier compensation reform order adopted last November. The clarifications address the rates applicable to VoIP-PSTN traffic, access stimulation and the CETC phase-down of high-cost support, among other things. 

The clarification order will be effective thirty days after it is published in the Federal Register, which is likely to occur quickly. However, as a practical matter, the clarifications are effective immediately in light of the rules being clarified already having taken effect.

For more information, see Kelley Drye's Advisory on the clarification order.

• Email This
• Print
• Trackbacks
• Share Link

Responding to complaints by rural LECs that call blocking has increased, the FCC yesterday issued a clarification and a stern warning to carriers not to block, choke or restrict calls to other carriers’ customers. While call completion issues can occur for a variety of reasons, allegations of “blocking” have arisen in a number of access charge disputes and other forms of telecommunications litigation that we track.

The FCC’s declaratory ruling serves as a warning that carriers involved in such disputes should not intentionally block or restrict the ability of callers to reach their intended destinations. It also appears to create affirmative obligations to correct call completion problems that are occurring.

• Email This
• Print
• Trackbacks
• Share Link

Last year, we posted a couple of items about outages in Verizon's 911 call completion systems, and investigations by the FCC and the Maryland PSC.  We thought now would be a good time for an update on those investigations.

• Email This
• Print
• Trackbacks
• Share Link

In 2011, the FCC was extremely active in the prepaid calling card area, proposing $25 million in fines and investigating several other prepaid card providers.  While the FCC has exclusive jurisdiction over prepaid cards when provided by common carriers, the Federal Trade Commission also has jurisdiction over non-carrier marketers of prepaid calling cards.  This case is a reminder of the shared jurisdiction between the agencies.   

• Email This
• Print
• Trackbacks
• Share Link

Back in November, we told you that the FCC was considering an order on reconsideration in the 2008 audio bridging classification appeal brought by InterCall, Inc.  It took over two months, but the FCC last week issued an order denying in full the petitions for reconsideration of the Classification Order.

The petitions were brought by two free conferencing providers, who argued that the FCC had misinterpreted the nature of audio bridging service (or at least their audio bridging services).  In the reconsideration order, the FCC denies the petitions.  While we had hoped that the reconsideration order would provide additional explanation of the rationale for classifying audio bridging as telecommunications, except for a discussion of bundled services, the order does not provide further guidance on the classification of bridging services.  As a result, audio conferencing providers will be left with the existing uncertainty for the foreseeable future when making classification decisions.   

• Email This
• Print
• Trackbacks
• Share Link