BloostonLaw Telecom Update Published by the Law Offices of Blooston, Mordkofsky, Dickens, Duffy & Prendergast, LLP [Portions reproduced here with the firm's permission.] www.bloostonlaw.com |
Vol. 12, No. 25 | x JUNE 24, 2009 |
Genachowski, McDowell Approved By Senate Commerce Committee
Last Thursday, the Senate Commerce Committee approved Julius Genachowski to be the next FCC Chairman by a vote of 24-1, with only Senator Jim DeMint (R-S.C.) voting against him. DeMint gave no reason for his negative vote. Robert McDowell was unanimously approved to continue as FCC Commissioner. However, Commerce Committee Chairman Jay Rockefeller (D-W.Va.) issued the following statement: “In the spirit of bipartisanship, I have ultimately decided to vote for Robert McDowell. However, my vote comes with concerns. I want to be clear that I have high expectations that Mr. McDowell will show great independence from the industries he regulates. I hope I am not disappointed.” The Senator’s statement seems somewhat odd in that McDowell was known to cross party lines on a number of votes during the Kevin Martin era. Both nominees must be confirmed by the full Senate, but no floor vote has yet been scheduled. At our deadline, a nomination hearing had not been scheduled for Mignon Clyburn and Meredith Attwell Baker. Although Baker is expected to fill the other Republican seat, she has not been formally nominated by the Obama Administration. President Obama announced his intention to nominate Clyburn earlier this year. BloostonLaw contacts: Hal Mordkofsky, Ben Dickens, Gerry Duffy, and John Prendergast. |
FCC Says It Will Investigate Handset Exclusivity Deals Following a congressional hearing on wireless issues last week, the FCC said it will investigate the anticompetitive effects of exclusivity arrangements between handset manufacturers and commercial wireless carriers. Acting FCC Chairman Michael Copps told reporters that he has already directed the Commission to look into the matter. "The Commission as the expert agency should determine whether some of these arrangements adversely restrict consumer choice or harm the development of innovative devices, and it should take appropriate action if it finds harm," Copps said. Julius Genachowski, who is in line to become the new chairman, also supports the review. Sen. John Kerry (D-Mass.) and three other senators earlier last week had requested that the FCC look into the matter. The Senate Commerce Committee held a hearing on “the Consumer Wireless Experience” last Wednesday, in which exclusivity arrangements were discussed. Witnesses included larger carriers, who argued that the market remains competitive despite the arrangements, while smaller carriers said such deals limit consumer choice. The FCC does have a pending rulemaking on exclusivity arrangements (RM-11497). This stems from a petition filed last fall by the Rural Cellular Association (RCA), asking the FCC to investigate such arrangements (BloostonLaw Telecom Update October 15, October 29, and December 3, 2008). BloostonLaw, on behalf of its clients, the Blooston Rural Carriers, filed comments in this proceeding in support of RCA. BloostonLaw stated that it believed that rural citizens should not be deprived of handset choices in violation of the Communications Act, and that handset exclusivity arrangements threaten the ability of Tier II and Tier III wireless carriers to compete effectively with nationwide carriers and their ability to provide service in remote and sparsely populated areas that are not adequately served by the nationwide carriers. Moreover, allowing exclusive arrangements between nationwide carriers and handset manufacturers may jeopardize the ability of Tier II and Tier III wireless carriers to obtain an adequate selection or supply of the devices they need to achieve compliance with FCC regulatory mandates such as hearing aid compatibility (HAC). The Commission should not hesitate to exercise its authority under the Act to prohibit these arrangements when they are found to be contrary to the public interest, BloostonLaw said. BloostonLaw contacts: Hal Mordkofsky, John Prendergast, Cary Mitchell, and Bob Jackson. Nortel Begins Bankruptcy Proceedings With Sale of LTE, CDMA Businesses Nortel commenced the bankruptcy process by announcing last week that it has entered into an agreement to sell its long term evolution (LTE) and code division multiple access (CDMA) wireless businesses to Nokia Siemens Networks (NSN) for $650 million. The agreement with NSN specifies that at least 2,500 employees would have the opportunity to continue with NSN. This represents a significant portion of the employees associated with the assets being sold. Since Nortel has been a significant provider of both wireline and wireless equipment to the rural telecommunications industry, our affected clients will want to keep track of where the Nortel business lines end up following the transactions associated with its bankruptcy. In addition to announcing this sale agreement, Nortel announced that it is advancing in its discussions with external parties to sell its other businesses. The company will assess other restructuring alternatives for these businesses in the event it is unable to maximize value through sales. In addition, Nortel will apply to delist its common shares and the NNL preferred shares from trading on the Toronto Stock Exchange (TSX) and expects that the creditor protection proceedings will ultimately result in the cancellation of these equity interests. Trading in such shares on the TSX is expected to be suspended pending the TSX's decision on the delisting application. Commenting on the announcements, Nortel President and Chief Executive Officer, Mike Zafirovski said: "Maximizing the value of our businesses in the face of a consolidating global market has been our most critical priority. We have determined the best way to do this is to find buyers for our businesses who can carry Nortel innovation forward, while preserving employment to the greatest extent possible. This will ensure Nortel's strong assets — technologies, customer relationships, and employees — continue to play an important role in driving the future of communications. The value of Nortel's wireless business is recognized throughout the industry. The agreement we are announcing today is solid proof of that value and represents the best path forward for our other businesses." Zafirovski continued: "We also believe this will help provide clarity for our customers and employees. Customers have demonstrated consistent support for our products and services, and we want to ensure they continue to benefit from Nortel's technology and know how. In addition, Nortel's employees are doing a tremendous job under challenging conditions, stabilizing our business and delivering outstanding service to our customers. It is important to provide our employees with a clear sense of direction around their future and potential opportunities with the new companies." The wireless business is the second largest supplier of CDMA infrastructure in the world. It does business with three of the five top CDMA operators globally, including Verizon Wireless, which operates the largest wireless voice and data network in the United States. Commenting on the wireless business announcement, Richard Lowe, President, Carrier Networks added: "Seeking a strong and stable buyer is the best path forward for our CDMA business and LTE Access assets. If successfully completed, this transaction would give many of our CDMA customers a clear roadmap for the future evolution of their networks and the opportunity to extend their relationship with a long-term partner. Further, we expect that a significant portion of the employees associated with the assets being sold would be able to continue their innovative work." Lowe continued, "Nortel has a long track record of wireless innovation which has helped us secure a strong and loyal customer base. Throughout this sale process, our customers will continue to receive the highest quality support for their current networks. If successfully concluded, the buyer would gain access to leading edge technology, know how, and embedded resources to support this significant customer base." Nortel will file the stalking horse asset sale agreement with the United States Bankruptcy Court for the District of Delaware along with a motion seeking the establishment of bidding procedures for an auction that allows other qualified bidders to submit higher or otherwise better offers, as required under Section 363 of the U.S. Bankruptcy Code. A similar motion for the approval of the bidding procedures will be filed with the Ontario Superior Court of Justice. In addition to the bidding process and U.S. and Canadian court approvals, consummation of the CDMA business and LTE Access transaction is subject to the satisfaction of customary and other conditions, including governmental approvals such as in Canada and the United States. The stalking horse asset sale agreement is also subject to purchase price adjustments under certain circumstances. BloostonLaw contacts: Hal Mordkofsky, Ben Dickens, Gerry Duffy, and John Prendergast COURT FAVORS VERIZON IN FORBEARANCE CASE: The U.S. Court of Appeals for the District of Columbia Circuit has granted Verizon’s petitions for review of an FCC order denying the carrier’s request for forbearance from its unbundling obligations under Section 251 of the Communications Act in certain markets. In Verizon v. FCC, Verizon contended that the FCC erroneously denied Verizon’s petition for forbearance from local exchange unbundling regulations by unlawfully departing from the legal standards and analyses in its prior forbearance orders. Specifically, Verizon asserted that the FCC’s order should be vacated because it relied on a newly minted bright-line market share test to determine whether the retail market in six Metropolitan Statistical Areas (MSAs) was sufficiently competitive to warrant forbearance from unbundling requirements. The Court agreed that this test departs from FCC precedent by relying solely on actual, and not potential, marketplace competition. The Court said the FCC’s unexplained departure from its precedent was in error. Accordingly, the D.C. Circuit granted Verizon’s petition on this limited ground and remanded for further consideration. BloostonLaw contacts: Ben Dickens, Gerry Duffy, and Mary Sisak. FCC’s 2009 INDIAN TELECOMMUNICATIONS INITIATIVE TO BE HELD IN SOUTH DAKOTA: The FCC, as part of its Indian Telecommunications Initiatives (ITI), and its outreach for developing a national broadband plan, will hold its eighth regional workshop and roundtable in Rapid City and Pine Ridge, South Dakota from July 27-29, 2009 (ITI South Dakota). This multifaceted workshop and roundtable will focus on ways to expand the deployment of new broadband technologies in Indian Tribal Areas. The first day in Rapid City, South Dakota, will have sessions discussing an overview of telecommunications law, and the technology of telecommunications. The following day will focus on the importance of broadband technology in rural and tribal areas, what some tribes are doing to obtain broadband, and what more can be done to expand broadband deployment on tribal lands. Day two will also feature a keynote address by FCC Acting Chairman Michael J. Copps. The event will culminate on day three with a tour of the Oglala Sioux Tribal Reservation in nearby Pine Ridge. Representing another important building block for a national broadband plan, ITI South Dakota will feature opportunities for FCC staff to interact with tribal officials, staff from other government agencies, as well as tribal citizens, and hear about issues and challenges faced by tribes in securing and expanding broadband access in tribal communities. BloostonLaw contacts: Ben Dickens and Mary Sisak. FCC PROPOSES 12.9% USF CONTRIBUTION FACTOR FOR THIRD QUARTER 2009: The FCC has proposed setting the Universal Service Fund (USF) contribution factor at a record 0.129 or 12.9% for the third quarter of 2009. This is an increase from the 11.3% from the second quarter figure and the 9.5% first quarter figure. It is also above the 11.4% figure for the third and fourth quarters of 2008, as well as the 11.3% figure for the second quarter of 2008. And it is up from 10.2% figure for the first quarter of 2008. The proposed 12.9% contribution factor for the third quarter of 2009 will be used to calculate the line item charge on the customer’s bill (i.e., to calculate the charges on revenues that a carrier receives). The FCC’s USF Interim Contribution Methodology order prohibits carriers from marking up the USF line item higher than the contribution factor. If the FCC takes no action by June 26, the contribution factor will become effective. BloostonLaw contacts: Ben Dickens, Gerry Duffy, and Mary Sisak. FLOW MOBILE PROPOSES PRIVATE, PUBLIC SAFETY “D-BLOCK” PLAN: New EA Inc. dba Flow Mobile has proposed serving several rural states with a combination of licensed and unlicensed 700 MHz spectrum, for public safety and commercial use. Flow Mobile proposes to be a “first mover” to provide 4G mobile broadband services to rural communities. Under the first phase of its plan it would cover 1 million pops in 300 towns in ND, SD, MT, MN, WY, NB, AZ, NM, and OK (unlicensed spectrum). Under the second phase, it proposes to deploy a statewide 700 MHz overlay in 11 rural states. It claims to have the ability to carry high speed multiple forms of traffic in a mobile environment, to have low-cost technology with an easy migration path between licensed and unlicensed spectrum, and would employ an open standards approach. Flow Mobile submitted this plan in the FCC’s proceeding to determine the path for licensing the 700 MHz “D Block” spectrum, which is to be used in partnership with public safety entities on a nationwide or regional basis. Flow Mobile appears to be advocating statewide D Block licensing instead, with the possibility of “combinatorial bidding” (allowing a bidder to bid on multiple states as a package). BloostonLaw contacts: John Prendergast and Cary Mitchell. JUNE 30: ANNUAL ICLS USE CERTIFICATION. Rate of return carriers and CETCs must file a self-certification with the FCC and the Universal Service Administrative Company (USAC) stating that all Interstate Common Line Support (ICLS) and Long Term Support (LTS) will be used only for the provision, maintenance, and upgrading of facilities and services for which the support is intended. In other words, carriers are required to certify that their ICLS and LTS support is being used consistent with Section 254(e) of the Communications Act. Failure to file this self-certification will preclude the carrier from receiving ICLS support. We, therefore, strongly recommend that clients have BloostonLaw submit this filing and obtain an FCC proof-of-filing receipt for client records. BloostonLaw contacts: Ben Dickens, Gerry Duffy, and Mary Sisak. JULY 10: DTV EDUCATION REPORT. New 700 MHz licensees from Auction No. 73 are required to file a report with the FCC concerning their efforts to educate consumers about the upcoming transition to digital television (DTV). Last summer, we explained that the FCC’s Part 27 rules require 700 MHz licensees that won licenses in Auction No. 73 to file quarterly reports on their DTV consumer outreach efforts through the Spring of 2009. However, in an apparent contradiction, the same rules do not impose any substantive consumer education requirements on 700 MHz license holders. This situation has not changed. The reporting rule simply states that “the licensee holding such authorization must file a report with the Commission indicating whether, in the previous quarter, it has taken any outreach efforts to educate consumers about the transition from analog broadcast television service to digital broadcast television service (DTV) and, if so, what specific efforts were undertaken.” Many licensees may not have initiated 700 MHz service as of yet. However, to the extent they are also an Eligible Telecommunications Carrier (ETC) and recipient of federal USF funds, separate FCC rules found in 47 C.F.R. Part 54 (Universal Service) require ETCs to send monthly DTV transition notices to all Lifeline/Link-Up customers (e.g., as part of their monthly bill), and to include information about the DTV transition as part of any Lifeline or Link-Up publicity campaigns until June 30, 2009. BloostonLaw contacts: Hal Mordkofsky and Cary Mitchell. JULY 20: FCC FORM 497, LOW INCOME QUARTERLY REPORT. This form, the Lifeline and Link-Up Worksheet, must be submitted to the Universal Service Administrative Company (USAC) by all eligible telecommunications carriers (ETCs) that request reimbursement for participating in the low-income program. The form must be submitted by the third Monday after the end of each quarter. It is available at: www.universalservice.org. BloostonLaw contacts: Ben Dickens, Gerry Duffy, and Mary Sisak. JULY 31: FCC FORM 507, UNIVERSAL SERVICE QUARTERLY LINE COUNT UPDATE. Line count updates are required to recalculate a carrier's per line universal service support, and is filed with the Universal Service Administrative Company (USAC). This information must be submitted on July 31 each year by all rate-of-return incumbent carriers, and on a quarterly basis if a competitive eligible telecommunications carrier (CETC) has initiated service in the rate-of-return incumbent carrier’s service area and reported line count data to USAC in the rate-of-return incumbent carrier’s service area, in order for the incumbent carrier to be eligible to receive Interstate Common Line Support (ICLS). This quarterly filing is due July 31 and covers lines served as of December 31, 2007. Incumbent carriers filing on a quarterly basis must also file on September 30 (for lines served as of March 31, 2008); December 30 (for lines served as of June 30, 2008), and March 31, 2009, for lines served as of September 30, 2008).. BloostonLaw contacts: Ben Dickens, Gerry Duffy, and Mary Sisak. JULY 31: FCC FORM 525, COMPETITIVE CARRIER LINE COUNT QUARTERLY REPORT. Competitive eligible telecommunications carriers (CETCs) are eligible to receive high cost support if they serve lines in an incumbent carrier’s service area, and that incumbent carrier receives high cost support. CETCs are eligible to receive the same per-line support amount received by the incumbent carrier in whose study area the CETC serves lines. Unlike the incumbent carriers, CETCs will use FCC Form 525 to submit their line count data to the Universal Service Administrative Company (USAC). This quarterly report must be filed by the last business day of March (for lines served as of September 30 of the previous year); the last business day of July (for lines served as of December 31 of the previous year); the last business day of September (for lines served as of March 31 of the current year); and the last business day of December (for lines served as of June 30 of the current year). CETCs must file the number of working loops served in the service area of an incumbent carrier, disaggregated by the incumbent carrier’s cost zones, if applicable, for High Cost Loop (HCL), Local Switching Support (LSS), Long Term Support (LTS), and Interstate Common Line Support (ICLS). ICLS will also require the loops to be reported by customer class as further described below. For Interstate Access Support (IAS), CETCs must file the number of working loops served in the service area of an incumbent carrier by Unbundled Network Element (UNE) zone and customer class. Working loops provided by CETCs in service areas of non-rural incumbents receiving High Cost Model (HCM) support must be filed by wire center or other methodology as determined by the state regulatory authority. CETCs may choose to complete FCC Form 525 and submit it to USAC, or designate an agent to file the form on its behalf. BloostonLaw contacts: Ben Dickens, Gerry Duffy, and Mary Sisak. JULY 31: REPORT OF EXTENSION OF CREDIT TO FEDERAL CANDIDATES. This report (in letter format) must be filed by January 30 and July 31 of each year, but ONLY if the carrier extended unsecured credit to a candidate for a Federal elected office during the reporting period. BloostonLaw contacts: Hal Mordkofsky, John Prendergast, and Richard Rubino. AUGUST 1: FTC BEGINS ENFORCEMENT OF RED FLAG RULES. The Federal Trade Commission (FTC) has delayed enforcement of the “Red Flag” Rules for 90 days until August 1, 2009, to give creditors and financial institutions additional time to implement identity theft programs. Under the new rules, all businesses that maintain a creditor-debtor relationship with customers, including virtually all telecommunications carriers (but other companies as well), must adopt written procedures designed to detect the relevant warning signs of identity theft, and implement an appropriate response. The Red Flag compliance program was in place as of November 1, 2008. But the FTC will not enforce the rules until August 1, 2009, meaning only that a business will not be subject to enforcement action by the FTC if it delays implementing the program until August 1. The FTC announcement does not affect other federal agencies’ enforcement of the original Nov. 1, 2008, compliance deadline for institutions subject to their oversight. Other liabilities may be incurred if a violation occurs in the meantime. The requirements are not just binding on telcos and wireless carriers that are serving the public on a common carrier basis. They also apply to any “creditor” (which includes entities that defer payment for goods or services) that has “covered accounts” (accounts used mostly for personal, family or household purposes). This also may affect private user clients, as well as many telecom carriers’ non-regulated affiliates and subsidiaries. BloostonLaw has prepared a Red Flag Compliance Manual to help your company achieve compliance with the Red Flag Rules. Please contact Gerry Duffy (202-828-5528) or Mary Sisak (202-828-5554) with any questions or to request the manual. AUGUST 3: FCC FORM 499-Q, TELECOMMUNICATIONS REPORTING WORKSHEET. All telecommunications common carriers that expect to contribute more than $10,000 to federal Universal Service Fund (USF) support mechanisms must file this quarterly form. (Normally this form is due on August 1, but because August 1 falls on a Saturday this year, the next business day is Monday, August 3.) This filing requirement also applies to certain Private Mobile Radio Service (PMRS) licensees, such as for-profit paging and messaging, dispatch and two-way mobile radio services. The FCC has modified this form in light of its recent decision to establish interim measures for USF contribution assessments. The form contains revenue information from the prior quarter plus projections for the next quarter. Form 499-Q relates only to USF contributions. It does not relate to the cost recovery mechanisms for the Telecommunications Relay Service (TRS) Fund, the North American Numbering Plan Administration (NANPA), and the shared costs of local number portability (LNP), which are covered in the annual form (Form 499-A) that was due April 1. For-profit private radio service providers that are “de minimis” (those that contribute less than $10,000 per year to the USF) do not have to file the 499-A or 499-Q. However, they must fill out the form and retain the relevant calculations as well as documentation of their contribution base revenues for three years. De minimis telecom carriers must actually file the Form 499A, but not the 499Q. BloostonLaw contacts: Ben Dickens, Gerry Duffy, and Mary Sisak. AUGUST 3: FCC FORM 502, NUMBER UTILIZATION AND FORECAST REPORT: Any wireless or wireline carrier (including paging companies) that have received number blocks—including 100, 1,000, or 10,000 number blocks—from the North American Numbering Plan Administrator (NANPA), a Pooling Administrator, or from another carrier, must file Form 502 by August 3. (Normally, this filing would be due August 1, but this year August 1 falls on a Saturday, and agency rules require the filing be submitted the first business day thereafter.) Carriers porting numbers for the purpose of transferring an established customer’s service to another service provider must also report, but the carrier receiving numbers through porting does not. Resold services should also be treated like ported numbers, meaning the carrier transferring the resold service to another carrier is required to report those numbers but the carrier receiving such numbers should not report them. New this year is that reporting carriers are required to include their FCC Registration Number (FRN). Reporting carriers file utilization and forecast reports semiannually on or before February 1 for the preceding six-month reporting period ending December 31, and on or before August 1 for the preceding six-month reporting period ending June 30. BloostonLaw contacts: Ben Dickens, Gerry Duffy, and Mary Sisak. SEPTEMBER 1: COPYRIGHT STATEMENT OF ACCOUNTS. The Copyright Statement of Accounts form plus royalty payment for the first half of calendar year 2009 is due to be filed September 1 at the Library of Congress’ Copyright Office by cable TV service providers. BloostonLaw contact: Gerry Duffy. SEPTEMBER 1: FCC FORM 477, LOCAL COMPETITION AND BROADBAND REPORTING FORM. In its June 12, 2008 WC Docket No. 07-38 Form 477 Report & Order and Further Notice of Proposed Rulemaking (FNPRM) to improve data collection, the Commission modified Form 477 to require broadband providers to report the number of broadband connections in service in individual Census Tracts. In order to generate an even more complete picture of broadband adoption in the United States, it proposed additional methods to add to the data reported by Form 477 filers, including a voluntary household self-reporting system, and a recommendation to the Census Bureau that the American Community Survey questionnaire be modified to gather information about broadband availability and subscription in households. To further improve the quality of collected data, the FCC adopted three additional changes to FCC Form 477. First, it now requires broadband service providers to report data on broadband service speed in conjunction with subscriber counts according to new categories for download and upload speeds. These new speed tiers will better identify services that support advanced applications. Second, it amended reporting requirements for mobile wireless broadband providers to require them to report the number of subscribers whose data plans allow them to browse the Internet and access the Internet content of their choice. Finally, it required providers of interconnected Voice over Internet Protocol (VoIP) service to report subscribership information on Form 477. Then, on reconsideration, it added a requirement that filers include the percentage of residential broadband connections. Who Must File Form 477: Three types of entities must file this form. (1) Facilities-based Providers of Broadband Connections to End User Locations: Entities that are facilities-based providers of broadband connections — which are wired “lines” or wireless “channels” that enable the end user to receive information from and/or send information to the Internet at information transfer rates exceeding 200 kbps in at least one direction – must complete and file the applicable portions of this form for each state in which the entity provides one or more such connections to end user locations. For the purposes of Form 477, an entity is a “facilities-based” provider of broadband connections to end user locations if it owns the portion of the physical facility that terminates at the end user location, if it obtains unbundled network elements (UNEs), special access lines, or other leased facilities that terminate at the end user location and provisions/equips them as broadband, or if it provisions/equips a broadband wireless channel to the end user location over licensed or unlicensed spectrum. Such entities include incumbent and competitive local exchange carriers (LECs), cable system operators, fixed wireless service providers (including “wireless ISPs”), terrestrial mobile wireless service providers, satellite mobile wireless service providers, MMDS/BRS providers, electric utilities, municipalities, and other entities. (Such entities do not include equipment suppliers unless the equipment supplier uses the equipment to provision a broadband connection that it offers to the public for sale. Such entities also do not include providers of fixed wireless services (e.g., “Wi-Fi” and other wireless ethernet, or wireless local area network, applications) that only enable local distribution and sharing of a premises broadband facility.) (2) Providers of Wired or Fixed Wireless Local Telephone Services: Incumbent and competitive LECs must complete and file the applicable portions of the form for each state in which they provide local exchange service to one or more end user customers (which may include “dial-up” ISPs). (3) Providers of Mobile Telephony Services: Facilities-based providers of mobile telephony services must complete and file the applicable portions of this form for each state in which they serve one or more mobile telephony subscribers. A mobile telephony service is a real-time, two-way switched voice service that is interconnected with the public switched network using an in=network switching facility that enables the provider to reuse frequencies and accomplish seamless handoff of subscriber calls. Obvious examples include cellular, PCS, and “covered” SMR carriers, but may include services provided on other wireless spectrum such as AWS, BRS and 700 MHz if configured to fit the above definition. A mobile telephony service provider is considered “facilities-based” if it serves a subscriber using spectrum for which the entity holds a license, that it manages, or for which it has obtained the right to use via lease or other arrangement (e.g., with a Band Manager). BloostonLaw contacts: Ben Dickens, Gerry Duffy, and Mary Sisak.
SEPTEMBER 30: FCC FORM 507, UNIVERSAL SERVICE QUARTERLY LINE COUNT UPDATE. Line count updates are required to recalculate a carrier's per line universal service support, and is filed with the Universal Service Administrative Company (USAC). This information must be submitted on July 31 each year by all rate-of-return incumbent carriers, and on a quarterly basis if a competitive eligible telecommunications carrier (CETC) has initiated service in the rate-of-return incumbent carrier’s service area and reported line count data to USAC in the rate-of-return incumbent carrier’s service area, in order for the incumbent carrier to be eligible to receive Interstate Common Line Support (ICLS). This quarterly filing is due July 31 and covers lines served as of December 31, 2007. Incumbent carriers filing on a quarterly basis must also file on September 30 (for lines served as of March 31, 2008); December 30 (for lines served as of June 30, 2008), and March 31, 2009, for lines served as of September 30, 2008). BloostonLaw contacts: Ben Dickens, Gerry Duffy, and Mary Sisak. SEPTEMBER 30: FCC FORM 525, COMPETITIVE CARRIER LINE COUNT QUARTERLY REPORT. Competitive eligible telecommunications carriers (CETCs) are eligible to receive high cost support if they serve lines in an incumbent carrier’s service area, and that incumbent carrier receives high cost support. CETCs are eligible to receive the same per-line support amount received by the incumbent carrier in whose study area the CETC serves lines. Unlike the incumbent carriers, CETCs will use FCC Form 525 to submit their line count data to the Universal Service Administrative Company (USAC). This quarterly report must be filed by the last business day of March (for lines served as of September 30 of the previous year); the last business day of July (for lines served as of December 31 of the previous year); the last business day of September (for lines served as of March 31 of the current year); and the last business day of December (for lines served as of June 30 of the current year). CETCs must file the number of working loops served in the service area of an incumbent carrier, disaggregated by the incumbent carrier’s cost zones, if applicable, for High Cost Loop (HCL), Local Switching Support (LSS), Long Term Support (LTS), and Interstate Common Line Support (ICLS). ICLS will also require the loops to be reported by customer class as further described below. For Interstate Access Support (IAS), CETCs must file the number of working loops served in the service area of an incumbent carrier by Unbundled Network Element (UNE) zone and customer class. Working loops provided by CETCs in service areas of non-rural incumbents receiving High Cost Model (HCM) support must be filed by wire center or other methodology as determined by the state regulatory authority. CETCs may choose to complete FCC Form 525 and submit it to USAC, or designate an agent to file the form on its behalf. BloostonLaw contacts: Ben Dickens, Gerry Duffy, and Mary Sisak. OCTOBER 1: STATE CERTIFICATION OF UNIVERSAL SERVICE SUPPORT. State regulatory commissions must certify by October 1 that eligible rural carriers are using universal service support for the intended purposes. State commissions must file this annual certification with the FCC and the Universal Service Administrative Company (USAC) stating that all federal high-cost support provided to rural incumbent local exchange carriers (ILECs) and competitive eligible telecommunications carriers (CETCs) serving lines in rural ILEC service areas "will be used only for the provision, maintenance, and upgrading of facilities and services for which the support is intended." Failure of a state commission to provide certification will mean that non-certified carriers in that state will not receive high-cost support for the first quarter of 2008. If you have any doubts about your state's status, contact your state commission immediately. Carriers not subject to state jurisdiction must certify directly to the FCC and USAC. BloostonLaw contacts: Ben Dickens, Gerry Duffy, and Mary Sisak. OCTOBER 1: LOCAL SWITCHING SUPPORT FORMS. All incumbent eligible telecommunications carriers (ETCs) serving study areas with 50,000 or fewer access lines must file projections for Local Switching Support (LSS) with the Universal Service Administrative Company (USAC) no later than October 1 in order to receive LSS in calendar year 2006. Average schedule companies must submit USAC Form LSSa, and cost companies must submit USAC Form LSSc. Whereas the National Exchange Carrier Association (NECA) normally files these forms for participants in its Traffic Sensitive Pool, carriers maintaining their own interstate access tariffs for traffic sensitive services (or services that are otherwise not included in the pool) must file the forms themselves. Contact the firm if you need assistance with these forms. BloostonLaw contacts: Ben Dickens, Gerry Duffy, and Mary Sisak. VITAL MEETINGS & DEADLINES June 26 – Deadline for petitions to suspend or reject annual access tariffs filed on seven day’s notice (by carriers proposing to decrease all of their rates). June 26 – Deadline for replies to petitions to suspend or reject annual access tariffs filed on 15 days’ notice (by carriers proposing to increase any of their rates). June 29 – Deadline for replies to petitions to suspend or reject annual access tariffs filed on seven day’s notice (by carriers proposing to decrease all of their rates). June 29 – Deadline for reply comments on 14th Annual Report on CMRS Competition (WT Docket No. 09-66). June 30 – DTV Consumer Education Initiative requirements expire. June 30 – Annual ICLS Use Certification is due. June 30 – Deadline for reply comments on Supplemental NOI regarding video competition report (2008 data) (MB Docket No. 07-269). July 1 – Annual Access Charge Tariff Filings go into effect. July 2 – FCC open meeting. July 6 – Deadline for comments on Alexicon request to change Form 499-A filing deadline to Sept. 1 (WC Docket No. 06-122). July 6 – Deadline for comments on competitive provision of 911 service presented by consolidated arbitration proceedings (WC Docket Nos. 08-33, 08-185). July 6 – Deadline for reply comments on Denali’s request that the FCC forbear from applying unjust enrichment provisions to competitive bidding rules (WT Docket No. 09-64). July 7 – Deadline for reply comments on NOI seeking comment on developing national broadband plan (GN Docket No. 09-51). July 10 – Auction 73 winners must file quarterly report covering DTV consumer education outreach efforts for period Apr.-June 2009. July 12 – DTV Analog Nightlight program ends. July 20 – FCC Form 497, Low Income Quarterly Report, is due. July 20 – Deadline for comments on fixing omission in 4.9 GHz rules (WP Docket No. 07-100). July 20 – Deadline for reply comments on Alexicon request to change Form 499-A filing deadline to Sept. 1 (WC Docket No. 06-122). July 21 – Deadline for reply comments on competitive provision of 911 service presented by consolidated arbitration proceedings (WC Docket Nos. 08-33, 08-185). July 29 – Deadline for comments on Supplemental NOI regarding video competition report (2009 data) (MB Docket No. 07-269 |