Reminder: Non-Interconnected VoIP Providers Must Register by December 31

Back in October, the FCC released an order implementing the Twenty-First Century Communications and Video Accessibility Act of 2010 (CVAA).  Among other things, the order expanded the pool of contributors to the Telecommunications Relay Service Fund to include virtually all VoIP providers, including those that did not fit the FCC's definition of "interconnected" VoIP.

To implement this contribution requirement, non-interconnected VoIP providers are required to register with the FCC by filing FCC Form 499-A, which is better known as the form used for universal service fund contributions.  (The Form 499-A is used for other revenue-based support funds as well.)  Providers must file this form no later than December 31, 2011.  At this time, it appears that fewer than a dozen new providers have registered to date.  

For the FCC's CVAA order, see this link. A non-interconnected VoIP provider offers a service that (i) enables real-time voice communications that originate from or terminate to the user’s location using Internet protocol or any successor protocol and (ii) requires Internet protocol compatible customer premises equipment, but (iii) is not an interconnected VoIP service.

VoIP service providers should consult with their counsel to determine whether this new requirement reaches their activities.  

Telecom Law Monitor Feature: Regulatory Requirements for VoIP Services

Our post about the unique enforcement posture of interconnected VoIP quickly became the most popular post on the Telecom Law Monitor.  One person asked if we could elaborate on the differences in regulatory treatment between traditional telecom services, interconnected VoIP and non-interconnected VoIP (like Skype).   In response, we prepared a chart comparing applicability of the major telecom obligations to both types of VoIP.

As the chart shows, the FCC has imposed many telecom obligations on interconnected VoIP on an individual basis.  In each instance, the FCC relied upon its ancillary authority to impose the obligation, even if it were ultimately to classify interconnected VoIP an information service.  In a few instances, the FCC has not -- yet at least -- imposed a telecom obligation on interconnected VoIP.  VoIP services that do not meet the FCC's definition of "interconnected VoIP" are not subject to any of the telecom service requirements today. 

DISCLAIMER: This chart is for informational purposes only and is not intended to serve as legal advice or a comprehensive review of regulatory obligations.  With that in mind, you may view the chart here.

Telecommunications Relay Service Fund Contribution Factor Decreases

We have a classic "man bites dog" story for you today:  The FCC announced that its contribution factor for the fund that supports the Telecommunications Relay Service -- a telecom assistance service for persons with hearing or speech disabilities -- is decreasing by nearly 50%.  Whereas last year's TRS contribution factor was 1.1% of telecom revenues, the 2010-11 factor is only 0.585% of telecom revenues.

However, this rate was lowered in part by a one-time application of a refund from the 2009-10 fund.  Carriers can expect a slight increase in July 2011, after the one-time refund is exhausted.

The new rate is effective as of July 1.  Carriers subject to the TRS fund (basically, any entity that files a FCC Form 499) should see the lower rate on their next invoice from the TRS administrator.

Kelley Drye's client advisory on the TRS reduction is available here.

The FCC order setting the TRS contribution factor is available here.