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Posts Tagged ‘Wireline Competition Bureau

FCC Seeking Comment on E-Rate Draft Eligible Services List

Posted on June 28, 2011

The FCC’s Wireline Competition Bureau has released a Public Notice soliciting comment on the Universal Service Administrative Company’ (USAC) draft eligible services list for the schools and libraries universal support mechanism (E-rate program) for funding year 2012.  FCC rules require USAC to submit annually a draft eligible services list for the E-rate program.  The purpose of the draft list is to inform potential beneficiaries of the specific products and services that may be eligible for discounts under the E-rate program.  Comments are due on or before July 15, 2011, and reply comments are due July 25, 2011.

FCC: CETC Revised Line Count Redistribution Procedures Unchanged

Posted on June 7, 2011

The FCC’s Wireline Competition Bureau (WCB) has sent a letter to the Universal Service Administrative Company (USAC) explaining procedures to be followed when a competitive Eligible Telecommunications Carrier (ETC) files revised line count reports with USAC.  Specifically, the WCB makes clear that the phase-down of support agreed to by Verizon Wireless and Sprint does not change the process for redistributing support if either carrier submits a revised line count.  Competitive ETCs receive support based on the number of lines they serve, subject to the Interim Cap rules.  Competitive ETCs often file line count revisions that result in reductions of support for past reporting periods.  USAC must then recalculate support for all competitive ETCs based on the revisions as required by the Interim Cap.

FCC Releases Telecommunications Revenues Report

Posted on May 16, 2011

The FCC’s Wireline Competition Bureau has released the Telecommunications Industry Revenues Report: 2009.  The report contains information on U.S. telecommunications industry revenues and contributions to the universal service support mechanisms over the past decade, and provides detailed information for 2009, based on April 2010 filings of FCC Form 499-A (annual Telecommunications Reporting Worksheet).  A few highlights from the report include the following findings:

  • In 2009, the telecommunications industry reported $281 billion in telecommunications service revenues, a decrease of 5% from 2008’s $297 billion.
  • Total mobile wireless service revenues fell by 5% between 2008 and 2009, from $124 billion to $118 billion.  However, when non-telecommunications revenues such as CPE sales and Internet service are included, total revenues of providers whose principal business activity is mobile wireless service held steady at about $187 billion.
  • Total telecommunications revenues for incumbent local exchange carriers (ILECs) decreased to $83 billion in 2009, down 7% from $90 billion in 2008.

USAC Seeks Guidance on Regulatory Classification of Text Messaging

Posted on May 10, 2011

The Universal Service Administrative Company (USAC) has sent a letter to Sharon Gillett, Chief of the FCC’s Wireline Competition Bureau (Bureau) requesting guidance regarding the proper reporting of text messaging revenues.  In its letter, USAC states that some carriers are reporting text messaging revenue as telecommunications revenue and are making universal service fund (USF) contributions based on that revenue.  However, some carriers are reporting the revenue as non-telecommunications (information service) revenue which is not subject to USF contributions.  USAC explains that instructions on the FCC form which is used by carriers to report their revenue supports classifying text messaging as either a telecommunications service or an information service.  Further, USAC reminds the FCC that is has not determined the regulatory classification of text messaging and until the issue is cleared-up, carriers will continue to “inconsistently report text messaging revenues.”  As a result of the letter, the Bureau has released a Public Notice seeking comment on USAC’s request for guidance.  Comments may be filed in WC Docket No. 06-122 on or before June 6, 2011, and reply comments on or before June 20, 2011.

Extensions Granted for Rural Health Care Pilot Program

Posted on May 4, 2011

The FCC’s Wireline Competition Bureau (Bureau) has granted extensions for two Rural Health Care Pilot Program deadlines.  First, with certain conditions, the Bureau has extended by one year, to June 30, 2012, the deadline for participants in the Pilot Program to choose a vendor and request funding commitments from the Universal Service Administrative Company.  The FCC had previously extended the deadline by one year.  The current extension was granted in response to twenty-three participants that argued the cause was warranted due to the fact that circumstances had not changed since the prior extension.  Second, the Bureau has extended by one year the invoice deadline for Pilot Program participants.  Participants had requested extensions of various lengths to the invoicing deadline.  However, the Bureau determined that an extension beyond one year was not warranted.  Pilot Program participants must now complete the buildout of their networks within six years from the date of receiving an initial funding commitment letter.  Established in 2006, the Rural Health Care Pilot Program provides support for up to 85 percent of the costs associated with the construction of state or regional broadband health care networks and the advanced telecommunications and information services provided over those networks.

FCC Approves Modification of Average Schedule Formulas

Posted on May 3, 2011

The FCC’s Wireline Competition Bureau has approved a modification to the average schedule formulas that will be in effect from July 1, 2011 to June 30, 2012.  The formulas prescribe settlement disbursements in connection with the provision of interstate access services.  The modifications were proposed by the National Exchange Carrier Association, Inc. (NECA) in December of 2010, and are based on increased account growth and significant reductions in some access demand elements.  The FCC issued a Public Notice in January of 2011, but received no comments on NECA’s modification request.  After reviewing the unopposed filing, the FCC determined that the proposed formulas are reasonable, and the formulas were revised using procedures consistent with those used by NECA in the past.

Comment Sought on USSC Petition Regarding USF Contributions

Posted on April 8, 2011

The FCC’s Wireline Competition Bureau is seeking comment on a U.S. Satellite Corporation (USSC) petition requesting a declaratory ruling clarifying that revenues derived from USSC’s services to its affiliate are excluded from its universal service fund (USF) contribution base or, alternatively, that a waiver of the FCC’s USF contribution rules is warranted.   USSC’s service at issue is a satellite-based system that provides backup to terrestrial data services.  Comments on USSC’s petition are due by May 9, 2011, and reply comments by May 24, 2011.

FCC Says Previous USF and ICC Data Insufficient, Asks NECA For More

Posted on March 30, 2011

The FCC’s Wireline Competition Bureau has sent a letter to the National Exchange Carrier Association (NECA) requesting certain data related to the universal service fund (USF) and intercarrier compensation (ICC) system.  The FCC wants to use the data to evaluate its proposed reforms to both programs.  NECA has been actively engaged in providing the FCC with data since the announcement of USF and ICC reform, but according to the FCC, the data submitted to date is insufficient.

The FCC is now seeking “data elements that NECA must collect and use in the ordinary course of performing its core functions of administering pooled interstate exchange carrier revenues and preparing tariffs.”  The FCC has requested NECA provide the data no later than April 6, 2011.  Specifically, the wants NECA to submit the following:

  • Comprehensive data on both interstate and intrastate switched access revenues, expenses, and minutes of use, reported annually for the period from 2008 to 2010 and broken out by carrier, by study area, by rate element, and by originating and terminating access.
  • Stratification of residential line counts by monthly local retail rate for year-end 2010, by carrier.
  • Comprehensive data on reciprocal compensation revenues, expenses, and minutes of use, reported annually for the period from 2008 to 2010 and broken out by carrier, by study area, and by rate element.
  • Carrier-specific annual data from 2008 to 2010 detailing both regulated and non-regulated revenues.
  • Comprehensive data on all long-term debt by carrier, broken out by lender.