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)], thatprovided international telecommunications services on owned or leased circuits in previouscalendar year.


Report must include status of international circuits used during prior calendaryear. 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 interstatetelecommunications services during reporting period. Carriers below a threshold need notfile. Unlike Form 431 (see below), private carriers and shared tenant service (STS)providers must file.

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

Assessments are based on intrastate, interstate and international revenues.Revenues from services provided to resellers that file Form 457s are excluded. Worksheetsare filed twice a year–March 31 for the prior calendar year and Sept. 1 for the first sixmonths of the current year. No fee is due when the worksheet is submitted. Carriers arebilled 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 inexcess of the indexed revenue threshold (IRT), adjusted annually for inflation. While theIRT for 1998 has not been set, the IRT for 1997 was $112 million.


Mail letter providing prior year total operating revenues and grosstelecommunications 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 Statesand between the United States and foreign points.

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

LNP allows end users to change local exchange carriers (LECs) without changingtheir telephone numbers. Carriers must file one FCC Form 487 with Lockheed Martin Corp.,the administrator for all seven regional databases. Regional database administrators willassess a charge on all telecom carriers to fund the regional database. Although theinitial FCC Form 487 must be filed by April 16, 1999, billing is not expected to commencebefore fourth-quarter 1999. Assessments will be based on intrastate, interstate andinternational end user revenues. Carriers without end-user revenues in a particular regionwill 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 previousyear.

Varies annually (.038 percent in 1999)

Worksheet to be filed with NECA, the TRS Fund Administrator. Contributions arebased 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 servicesbetween the United States and foreign points during the previous calendar year.


Report must include traffic and revenue data for each and every internationalservice. Carriers should consult the Manual for Filing Section 43.61 International TrafficData, 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], operatorservices providers [OSPs]), telecom carriers providing licensed international services,wireless service licensees (specialized mobile radio [SMR], cellular, paging), andbroadcast licensees (commercial AM and FM radio, commercial TV, translator/boosterlicensees, etc.). Governments and nonprofit organizations are exempt from paying annualregulatory fees. Such entities must make a one-time filing with the FCC of their nonprofitstatus.

Varies annually

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

Form 496 NANPA Funding Worksheet

Oct. 14

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

Varies annually (.0022 percent in 1998)

Assessments are based on gross interstate, international and intrastaterevenues less any payments made to other telecom carriers for telecommunicationsfacilities and services used to provide telecommunications services. The minimumcontribution is $100 per year. Complete worksheet and send it to the North AmericanNumbering Plan Administration Billing and Collection Agent (NBANC).

Payphone Compensation


Telecom carriers, including resellers, owning or leasing switching equipmentand 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 presstime, not yet effective).

Telecom carriers are billed by payphone service providers (PSPs) fordial-around compensation. Absent an alternative agreed upon amount, the new default rateof 24 cents will apply on a going-forward basis. For compensable calls completed betweenOct. 7, 1997, and the effective date of the new 24-cent rate, the FCC has determined thatthe lower rate of 23.8 cents will apply. The FCC is expected to issue a ruling shortlysetting the rate for "interim compensation," covering compensable callscompleted 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 amountscarriers owe to PSPs for this period. If the carrier overpayment is larger than the amountit owes the PSP for the period since Oct. 7, 1997, the carrier may deduct the remainingoverpayment from future payments to PSPs.

Section 214 Application

Prior to provision of international service

Telecom carriers, including resellers, which plan to provide any internationaltelecommunications 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, aninternational tariff (see below) must be filed prior to commencement of service. Under newstreamlining rules adopted by the FCC on March 18, 1999, the waiting period for grantingnew Section 214 applications is being reduced from 35 days to 14 days and applicationswill 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 withoutthe 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 internationaland/or domestic telecommunications services.


The FCC’s rules allow the filing of a single combined international/domestictariff, in lieu of separate tariffs. Submission of the tariff to the FCC requires a filingfee of $780. Tariff must be accompanied by an FCC Form 159. The tariff reflects thecompany’s rates along with the terms and conditions of international and/or domesticservice. The tariff takes effect on one day’s notice. The FCC’s October 1996 rulingadopting detariffing for domestic services is currently stayed until an appeal before theU.S. Court of Appeals of the ruling is decided. On March 18, the FCC ruled that if thecourt upholds detariffing for domestic services, carriers with websites will be requiredto 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 telecomcarrier that holds a Section 214 authorization. Typically, such filings are required ininstances involving mergers or acquisitions of telecom carriers, including resellers.


Authorization to transfer control must be granted before the transfer ofcontrol 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 rulesadopted by the FCC on March 18, the waiting period for granting transfer applications isbeing reduced from 35 to 14 days. 214 authorized carriers also will be allowed toundertake pro forma (or nonsubstantial) transfers of control and assignments of 214authorizations without prior FCC approval. However, under the new rules, the FCC must benotified 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 greaterownership or controlling interest.


Notification must be filed 60 days prior to affiliation of a U.S. internationalcarrier, including resellers, with a foreign carrier. Affiliation is defined as a 25percent or greater ownership or controlling interest in the U.S. carrier. The notificationis placed on public notice for comment. If control of carrier is being transferred, aseparate 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 chargeassessed on IXCs by LECs for each line presubscribed to the IXC. IXCs may pass the PICC onto end-user customers. During 1998 and through mid-1999, the maximum PICC for primaryresidential 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 onLEC 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 businesslines, to $2.50 for nonprimary residential lines, and to $4.25 for multiline businesslines. According to the FCC, the average nonprimary residential PICC is not expected toexceed $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 bythe LEC.

Back to Phone+ magazine

Read more about:

Free Newsletters for the Channel
Register for Your Free Newsletter Now

You May Also Like