Telecom & Prepaid Regulatory Updates – #1

It is extremely important that companies keep in synchronization with regulatory changes. At NetworkIP, we have taken the lead for our clients to ensure that they are made aware of regulatory items that affect their business. In an effort to share our knowledge of regulatory items affecting the telecom & prepaid industry we’ve decided to post this information to the Internet via our blog so that companies around the world could take advantage of this valuable information. It is my pleasure to bring to you the first of many “Telecom & Prepaid Regulatory Updates” courtesy of NetworkIP.

Telecom & Prepaid Regulatory Updates – #1
August 18, 2008
by: Jennifer Begin

If you are doing business in the telecom industry & have properly registered with the Federal Communications Commission & you have filed the 2008 Form 499-A (on 2007 Revenues) with USAC, you should be receiving invoices from the various regulatory agencies that govern this industry. As stated on the Form 499-A & further detailed in the instructions, those revenues reported are subject to Regulatory Fees other than just USF. On the last page of the form, there are boxes that must be checked which indicate for which fees you are eligible (not exempt from) to be billed. In an effort to further define what a customer should expect regarding these new invoiced amounts, below is detailed information about what is being billed & how the billing is calculated.

– NECA bills annually for the Telecommunication Relay Service (TRS) usually in July. If your contribution requirement is more than $1,200 then you can opt to have it billed monthly. Information on the 2008-2009 Interstate TRS Fund billing process is available at www.neca.org/NECA_Recources.asp. If you have questions regarding the calculation of your contribution, or need additional information you can contact Marina Aparicio at 973-884-8334 or maparic@neca.org.

– Universal Service Administrative Company (USAC) bills monthly for USF fees based on the revenues reported on the 499-Qs. The bill gives detailed information on how they determine your contribution as well as whether you are LIRE eligible & De Minimis eligible.

– NeuStar bills monthly for Local Number Portability & Statement of Work (LNP/SOW) fees. This invoice is based on the revenue reported on the 499-A. You can view your invoice & instructions on “How to Read Your Invoice” through NeuStar’s password protected website at http://billing.neustar.com.

– FCC (Federal Communications Commission) bills annually, usually in the August-September time frame, for a Federal Regulatory Fee based on revenues reported on the 499-A. To find out how this regulatory fee is determined for your company, refer to the industry appropriate section under the heading “Who Owes Fees & What is My Fee” at http://www.fcc.gov/fees/regfees.html.

Information on these fees can be found in the 499-A instruction manual on pages 34-36.

* This article is strictly an overview & not to be construed as legal advice. You will need to apply this general information to your entity-specific situation & may need to seek legal advice to ensure you are in full compliance with the federal & state laws for telecommunications companies.

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