Commissioners Adopt USF/ICC Reform Order

FCC Commissioners at Thursday’s open meeting unanimously approved an order to reform the Universal Service Fund and Intercarrier Compensation System.

The full order has yet to be made public. In the meantime, the Commission released a 26-point executive summary.  

I will be reviewing the full order to determine how it will impact clients, along with Tele-Tech itself. Look for a summary of key points to be posted here once the order is released.

I’d like to hear how the new rules will affect you. Leave comments below or email me at krusso@telecomdb.com.

Frontier Discontinues Calling Card Services in Western U.S. 

Starting in November, Frontier Communications will no longer offer calling card services in the following states:

• Arizona
• Idaho
• Montana
• New Mexico
• Nevada
• Oregon
• Utah
• Washington

As a result, Tele-Tech will be deleting calling card and operator calling card services from the local pricing files and long distance toll files as determined by carriers and filings.

If you have any questions, contact Customer Service at kthomas@kfrservices.com or 800-433-6181.

NANPA Planning Letter (PL) Number 428 – British Columbia – NPA 236 to Overlay NPA 250/604/778

NANPA has assigned NPA 236 to provide relief for the 250/604/778 NPA service area in British Columbia, Canada. Ten-digit dialing is already mandatory, so a permissive dialing period is not necessary to prepare for this distributed overlay.
 
Key implementation dates are:
 
12/01/12 – NXX codes become available
03/03/13 – Network testing begins
06/01/13 – NPA 236 goes into effect

For test numbers and a map of the affected area, go to www.nanpa.com.

New CA Law Makes VoIP Providers Fund State Universal Service 

Interconnected VoIP carriers with terminating traffic in California will now have to pay into the state’s universal service fund. On October 9, Governor Edmund Brown signed into law a provision requiring this group of VoIP service providers to collect and remit surcharges on CA intrastate revenues.

The new law takes effect immediately.

Interconnected VoIP service providers can determine intrasate revenue by any of the following methods:

• The inverse of the interstate safe harbor percentage established by the FCC for interconnected VoIP service (currently 64.9%, which means the intrastate portion would be 35.1%). 
• A traffic study specific to the VoIP service provider allocating revenues between federal and state jurisdictions.
• Another means of accurately apportioning interconnected VoIP service between federal and state jurisdictions.

Any method used must be consistent with federal universal service contribution obligations.

The bill, authored by Assemblymember Joan Buchanan and supported by AT&T, is an attempt to recoup declining revenue from traditional wireline carriers. According to the California Public Utilities Commission (CPUC), there are two-and-a-half million VoIP users in the state. About 80%, or two million, are residential subscribers.

BellSouth, Windstream Increasing Rates

Tele-Tech is now updating changes to local calling areas, pricing files, rate group line charges (RGLC) and EUCL charges.

We’ve seen a lot of activity with RGLC changes. Bellsouth and Windstream increased rates in several states. 

BellSouth increases affect:

• Alabama
• Florida
• Georgia
• Kentucky
• Louisiana
• Mississippi
• North Carolina
• South Carolina
• Tennessee

Windstream increases affect:

• Arkansas
• Florida
• Georgia
• Iowa
• New Mexico
• North Carolina
• Oklahoma
• Pennsylvania
• Texas

RGLC updates will be shipped around October 25.

NANPA Planning Letter (PL) Number 427 – Maryland – NPA 667 to Overlay NPA 410/443

NANPA has assigned NPA 667 to provide relief for the 410/443 NPA service area in eastern Maryland. Ten-digit dialing is already mandatory, so a permissive dialing period is not necessary to prepare for this distributed overlay.

Key implementation dates are:

10/12/11 – Start of network preparation

01/23/12 – Earliest date to order central office codes in the new NPA

03/10/12 – Completion of network preparation

03/24/12 – NPA 667 goes into effect

For test numbers and a map of the affected area, go to www.nanpa.com.

FCC to Vote on USF Reform October 27

FCC Chairman Julius Genachowski unveiled in a speech Thursday a broad outline to reform the Universal Service Fund (USF) and Intercarrier Compensation (ICC) system.

Genachowski included elements from different proposals by industry members (the ABC Plan, the RLEC Plan and the plan submitted by the State Members of the Federal State Joint Board on Universal Service) but stated, “It will not rubber stamp or adopt wholesale the proposals of any stakeholder or group of stakeholders.”

For example, he said the plan would not eliminate states’ carrier of last resort obligations nor eliminate states’ responsibility for designating eligible telecommunications carriers. Plus, Connect America Fund support would not be provided as part of ICC recovery without accompanying broadband obligations.

Based on his speech, here is an outline of the Chairman’s plan: 

• Begin broadband build-out in 2012
• Create a separate Mobility Fund alongside the Connect America Fund
• Target funding exclusively in areas without an unsubsidized competitor
• Transition to a competitive bidding process
• Include a waiver process for special cases
• Close loopholes on phantom traffic and traffic pumping
• Phase down access rates over a measured but multi-year transition path, beginning with lowering intrastate access rates to interstate rate levels
• Address terminating charges and assess the appropriate transition path for other rate elements

The reform order has been given to the Commissioners. They’re scheduled to vote on the plan October 27.

Read the Chairman’s speech at www.fcc.gov.

FCC to Unveil Reform Plans Thursday

On Thursday, FCC Chairman Julius Genachowski will deliver a speech on proposed reforms to the Universal Service Fund (USF) and Intercarrier Compensation (ICC) system. The USF/ICC reform order will be available later that day. 

Genachowski will deliver the address in Washington, DC at 10:30 AM Eastern. The speech will also be broadcast live at www.fcc.gov/live.

Commissioners are expected to vote on the order at their October 27^th meeting.

The Chairman’s speech comes two months after issuing a Public Notice for comments on three different proposals: the ABC Plan, the RLEC Plan and the plan submitted by the State Members of the Federal State Joint Board on Universal Service.

See the latest edition of Tele-Tech Updates for a summary of each proposal. Tele-Tech will blog on Thursday comparing the Chairman’s plan with proposals submitted by the telecom industry.