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

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.

The FCC found that the services that MeetingOne provides are “substantially equivalent to the audio bridging services described in the InterCall Order and MeetingOne’s use of IP technology in the provision of that service does not alter our determination that MeetingOne’s service is telecommunications subject to direct USF reporting and contribution obligations.” The Intercall Order found that voice conferencing services were “telecommunications services,” not “information services” and therefore were subject to USF contributions.

In 2009, MeetingOne requested that USAC confirm that it was not required to make direct USF contributions or file a Form 499, arguing that the InterCall Order did not apply to them because it’s IP audio bridging services were different from InterCall’s. However, USAC rejected this request, stating that MeetingOne was required to contribute to USF starting with the last quarter of 2008 just as InterCall was required to.

The FCC approved of USAC’s decision in it’s November 3 Order stating that both services allowed end users to perform the same functions, and that additional functionality did not transform MeetingOne’s audo bridging service into an “information service.” Moreover, the FCC rejected MeetingOne’s argument that it “reasonably determined in good faith” that the InterCall Order did not apply to them, instead stating that the InterCall Order put the industry “on notice” that it had to contribute to USF beginning in the fourth quarter of 2008.

To read the Commission’s Order click here.

We welcome your thoughts, please feel free to comment!

If you have questions about any of these issues, or if we may be of assistance to you on any other matter, please feel free to contact us.

Reminder UPdate: Select Upcoming FCC Regulatory Deadlines

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.

Universal Service Fund (USF) – Forms 499-Q and 499-A

The FCC’s Form 499-Q (due quarterly) and FCC Form 499-A (due annually on April 1, 2011). This obligation is directed to service providers with estimated annual universal service contributions above a de minimus level of revenue from interstate and, international end users. The Universal Service Fund (USF) fee is to be paid based on reported interstate and international revenues, and is billed to the carrier by the Universal Service Administrative Company (USAC).

Prepaid Card Provider PIU Report

Every prepaid calling card service provider is required to report percentage of interstate usage (PIU) factors and call volumes to those carriers from which they purchase transport services by the 45^th day of each calendar quarter.  Additionally, such providers must file quarterly certifications with the FCC; these certifications must include:

1. Percentages of intrastate, interstate and international calling card minutes for that reporting period;
2. Percentages of total prepaid calling card service revenue (excluding revenue that is exempt under the military exemption) that are interstate and international and therefore subject to federal USF assessments for the reporting period;
3. A statement that the prepaid calling card provider is making the required USF contribution based on the reported information; and
4. A statement that it has reported the required information to carriers from which it purchases transport services.

Annual CPNI Compliance Certification

CPNI Compliance Certifications must be filed annually between January 1 and March 1 for data pertaining to the previous calendar year. These rules apply to telecommunications carriers and interconnected VoIP providers, including but not limited to: LECs (including ILECs, rural LECs and CLECs), IXCs, paging providers, CMRS providers, resellers, prepaid telecommunications providers, and calling card providers, interconnected VoIP providers and wholesalers.

Rate Integration Certification

The Rate Integration Certification must be filed annually by non-dominant providers of detariffed interexchange carriers (IXCs) services.  IXC’s must certify compliance with their geographic rate average and rate integration obligations under § 254(g) of the Communications Act. An officer of the company must sign the Certification under oath.   The deadline for filing was May 1, 2011.

FCC Form 395 Annual Carrier Employment Report

Form 395 must be filed by all licensees and permittees of common carrier stations with sixteen (16) or more full-time employees.  The instructions for completion of this form may be found on the FCC web site.  The form was due May 31, 2011.

If you have questions about any of these filing requirements or deadlines, or if we may be of assistance to you on any other matter, please feel free to contact us.

Need for Broadband Speed

Last week the FCC released a Notice seeking comments on the kinds of broadband performance-related information that will help consumers in purchasing broadband service.  After a recent FCC survey showed that 80 percent of people with broadband don’t even know what speed they’re getting from their service, the FCC seeks to change that by obtaining input on several issues, including:

• the most important service characteristics (e.g., latency, jitter, and peak hour performance) that consumers need to determine their broadband performance requirements;
• the most effective way to ensure that broadband providers inform consumers about broadband performance needs;
• concise, cost-effective manner;the best way to present information regarding broadband performance needs in a concise, cost-effective manner;
• how often should “need for speed” information be updated;
• what are the most effective ways to get the information to consumers, including those with disabilities;  and
• how can network performance determinants best be conveyed to consumers?

What is the best way to promote broadband full disclosure, and make such disclosures understandable so that consumers have access to this information when they purchase broadband services? Does it make sense to have broadband performance labeling, such as food nutrition labeling, automobile fuel efficiency guides, or household appliances energy efficiency labels?  Would this overwhelm consumers with technical data? Would government disclosure requirements for broadband constitute unnecessary government regulation of the Internet, and access to it?

We welcome your thoughts, please feel free to comment!

Comments to the FCC are due May 26, 2011. Reply Comments are due June 16, 2011. DA 11-661, CG Docket No. 09-158.

If you have questions, or if we may be of assistance to you on any other matter, please feel free to contact us.