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FCC Service Provider Filing and Fee Requirements

Channel Partners

May 1, 1999

9 Min Read
FCC Service Provider Filing and Fee Requirements

FCC Service Provider Filing and Fee Requirements

The information below summarizes the Federal Communications Commission’s (FCC’s) filing
requirements and regulatory assessments generally applicable to telecommunications service
providers. Interest on late payments and/or other penalties typically apply to companies
either not filing or underpaying. Data in the chart represents the best information
available as of March 22, 1999, and may have changed since this date. The information
below–listed chronologically by due date–concerns federal requirements/assessments;
additional state filing requirements may exist.


Date Due

Companies Obliged To File/Pay



Section 43.82 International Circuit Status Report

March 31

Telecom carriers, including resellers of private lines [Section 63.15(b)], that
provided international telecommunications services on owned or leased circuits in previous
calendar year.


Report must include status of international circuits used during prior calendar
year. Carriers should consult the manual for Filing Section 43.82 Circuit Status Data,
found on the FCC International Bureau’s website, for more details.

Form 457 Universal Service Worksheet

March 31 and Sept. 1

Telecom carriers including resellers that provided any interstate
telecommunications services during reporting period. Carriers below a threshold need not
file. Unlike Form 431 (see below), private carriers and shared tenant service (STS)
providers must file.

Varies quarterly (for second-quarter 1999: 3.05 percent of
interstate/international revenues; 0.57 percent of intrastate/interstate and international

Assessments are based on intrastate, interstate and international revenues.
Revenues from services provided to resellers that file Form 457s are excluded. Worksheets
are filed twice a year–March 31 for the prior calendar year and Sept. 1 for the first six
months of the current year. No fee is due when the worksheet is submitted. Carriers are
billed later on a monthly basis by the Universal Service Administrative Company (USAC).

Section 43.21 Annual Report

April 1

Telecom carriers, including resellers, with gross annual operating revenues in
excess of the indexed revenue threshold (IRT), adjusted annually for inflation. While the
IRT for 1998 has not been set, the IRT for 1997 was $112 million.


Mail letter providing prior year total operating revenues and gross
telecommunications plant to the FCC Industry Analysis Division, Mail Stop 1600F,
Washington, DC 20554.

Form 487 Local Number Portability (LNP) Worksheet

April 16

All telecom carriers providing telecommunications service in the United States
and between the United States and foreign points.

Charge is assessed in proportion to ratio of carrier’s revenues to sum of all
carriers’ revenues in area served by database.

LNP allows end users to change local exchange carriers (LECs) without changing
their telephone numbers. Carriers must file one FCC Form 487 with Lockheed Martin Corp.,
the administrator for all seven regional databases. Regional database administrators will
assess a charge on all telecom carriers to fund the regional database. Although the
initial FCC Form 487 must be filed by April 16, 1999, billing is not expected to commence
before fourth-quarter 1999. Assessments will be based on intrastate, interstate and
international end user revenues. Carriers without end-user revenues in a particular region
will be required to contribute $100 per year per region.

Form 431 TRS Fund Worksheet

April 26

Telecom carriers and resellers that billed for interstate services in previous

Varies annually (.038 percent in 1999)

Worksheet to be filed with NECA, the TRS Fund Administrator. Contributions are
based on interstate/international telecommunications revenues for previous calendar year.

Section 43.61 International Telecommunications Traffic Report

July 31

Telecom carriers and resellers that provided telecommunications services
between the United States and foreign points during the previous calendar year.


Report must include traffic and revenue data for each and every international
service. Carriers should consult the Manual for Filing Section 43.61 International Traffic
Data, which can be found on the FCC-State Link website.

Form 159 Regulatory Fees

Set Annually (Sept. 14-18 in 1998)

Virtually all licensed service providers, including interstate telecom carriers
(interexchange carriers [IXCs], resellers, LECs, competitive LECs [CLECs], operator
services providers [OSPs]), telecom carriers providing licensed international services,
wireless service licensees (specialized mobile radio [SMR], cellular, paging), and
broadcast licensees (commercial AM and FM radio, commercial TV, translator/booster
licensees, etc.). Governments and nonprofit organizations are exempt from paying annual
regulatory fees. Such entities must make a one-time filing with the FCC of their nonprofit

Varies annually

The fees are based on the amount of revenue reported on a company’s TRS
Worksheet, minus costs paid to underlying carriers. Interstate telecom carriers are
assessed per revenue dollar (.11 percent in 1998). Assessments for licensed international
services vary based on the particular facilities involved. Wireless licensees are assessed
per telephone number or unit served. Broadcast licensees are assessed based on the class
of station and population served. Failure to file the forms by the due date may result in
a 25 percent late filing penalty.

Form 496 NANPA Funding Worksheet

Oct. 14

All telecom carriers providing telecommunications service in the United States
and between the United States and foreign points.

Varies annually (.0022 percent in 1998)

Assessments are based on gross interstate, international and intrastate
revenues less any payments made to other telecom carriers for telecommunications
facilities and services used to provide telecommunications services. The minimum
contribution is $100 per year. Complete worksheet and send it to the North American
Numbering Plan Administration Billing and Collection Agent (NBANC).

Payphone Compensation


Telecom carriers, including resellers, owning or leasing switching equipment
and to whom completed dial-around calls from public payphones are routed.

24 cents per completed call, or at rate agreed upon by contract (as of press
time, not yet effective).

Telecom carriers are billed by payphone service providers (PSPs) for
dial-around compensation. Absent an alternative agreed upon amount, the new default rate
of 24 cents will apply on a going-forward basis. For compensable calls completed between
Oct. 7, 1997, and the effective date of the new 24-cent rate, the FCC has determined that
the lower rate of 23.8 cents will apply. The FCC is expected to issue a ruling shortly
setting the rate for "interim compensation," covering compensable calls
completed between Nov. 6, 1996, and Oct. 6, 1997. Overpayments made by carriers since Oct.
7, 1997, paying at the old 28.4-cent rate can be recouped as setoffs against amounts
carriers owe to PSPs for this period. If the carrier overpayment is larger than the amount
it owes the PSP for the period since Oct. 7, 1997, the carrier may deduct the remaining
overpayment from future payments to PSPs.

Section 214 Application

Prior to provision of international service

Telecom carriers, including resellers, which plan to provide any international
telecommunications services.


Submission of the application to the FCC requires a $780 filing fee.
Application must be accompanied by an FCC Form 159. Once the application is granted, an
international tariff (see below) must be filed prior to commencement of service. Under new
streamlining rules adopted by the FCC on March 18, 1999, the waiting period for granting
new Section 214 applications is being reduced from 35 days to 14 days and applications
will be granted regardless of whether objecting comments have been filed. The new rules,
in addition to expanding the class of applications eligible for streamlined processing,
allow 214 authorized carriers to provide service through wholly owned subsidiaries without
the need for such subsidiaries to obtain separate authorizations.

FCC International/ Domestic Tariff

Prior to provision of international/domestic services

Telecom carriers, including resellers, which plan to provide any international
and/or domestic telecommunications services.


The FCC’s rules allow the filing of a single combined international/domestic
tariff, in lieu of separate tariffs. Submission of the tariff to the FCC requires a filing
fee of $780. Tariff must be accompanied by an FCC Form 159. The tariff reflects the
company’s rates along with the terms and conditions of international and/or domestic
service. The tariff takes effect on one day’s notice. The FCC’s October 1996 ruling
adopting detariffing for domestic services is currently stayed until an appeal before the
U.S. Court of Appeals of the ruling is decided. On March 18, the FCC ruled that if the
court upholds detariffing for domestic services, carriers with websites will be required
to post online the terms, conditions and rates of such domestic services.

Section 214 Transfer of Control Application

Prior to consummation of transaction

Companies that intend to purchase or sell a controlling interest in a telecom
carrier that holds a Section 214 authorization. Typically, such filings are required in
instances involving mergers or acquisitions of telecom carriers, including resellers.


Authorization to transfer control must be granted before the transfer of
control can be consummated. Submission of the application requires a $780 filing fee.
Applications must be accompanied by an FCC Form 159. Based on new streamlining rules
adopted by the FCC on March 18, the waiting period for granting transfer applications is
being reduced from 35 to 14 days. 214 authorized carriers also will be allowed to
undertake pro forma (or nonsubstantial) transfers of control and assignments of 214
authorizations without prior FCC approval. However, under the new rules, the FCC must be
notified within 30 days of consummation of such a transaction.

Section 63.11 Foreign Carrier Affiliation Notice

60 days prior to affiliation with foreign carrier

Telecom carriers, including resellers, with Section 214 authorization,
discussed supra, in which a foreign company or entity obtains a 25 percent or greater
ownership or controlling interest.


Notification must be filed 60 days prior to affiliation of a U.S. international
carrier, including resellers, with a foreign carrier. Affiliation is defined as a 25
percent or greater ownership or controlling interest in the U.S. carrier. The notification
is placed on public notice for comment. If control of carrier is being transferred, a
separate application to transfer control must be filed (discussed infra).

Primary Interexchange Carrier Charge (PICC)

Typically billed monthly by LECs

All IXCs with 1+ presubscribed customers.

Varies based on type of line and LEC serving customer

As a part of the FCC’s access charge reform, the PICC is a monthly charge
assessed on IXCs by LECs for each line presubscribed to the IXC. IXCs may pass the PICC on
to end-user customers. During 1998 and through mid-1999, the maximum PICC for primary
residential and single-business lines is 53 cents, for nonprimary residential lines,
$1.50, and for each multiline business line, $2.75. PICC rates may be lower depending on
LEC local-loop costs. On July 1, 1999, the PICC ceiling will be adjusted for inflation,
and if necessary, increased to $1.03 for primary residential and single-line business
lines, to $2.50 for nonprimary residential lines, and to $4.25 for multiline business
lines. According to the FCC, the average nonprimary residential PICC is not expected to
exceed $2 and the multiline business PICC is expected to average less than $1 by 2001.
Under the FCC’s rules, end users that have not selected an IXC may be directly billed by
the LEC.

Source: Law Offices of Thomas K. Crowe, P.C.,
Copyright (c) 1999. The information in this matrix was collected and assembled by the Law
Offices of Thomas K. Crowe, P.C., a Washington-based law firm specializing in
telecommunications legal matters. Contact Thomas Crowe at +1 202 973 2890 for further

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