Contributions to the Telecommunications Relay Service Fund, 18490-18497 [2011-7798]
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18490
Federal Register / Vol. 76, No. 64 / Monday, April 4, 2011 / Proposed Rules
eligibility such as partnership
agreements, shareholder agreements,
management agreements, spectrum
leasing arrangements, and all other
agreements, including oral agreements,
establishing de facto and de jure control
of the qualifying Tribal entity. A
qualifying Tribal entity also must
provide the date(s) on which each of the
agreements listed was entered into.
(f) An applicant seeking eligibility as
a qualifying Tribal entity must attach
with its long-form application a
certification from the Tribal government
stating that the applicant is authorized
by the Tribal government to site
facilities and provide service on its
Tribal lands.
(g) Tribal land(s). Any federally
recognized Indian tribe’s reservation,
Pueblo, or Colony, including former
reservations in Oklahoma, Alaska
Native regions established pursuant to
the Alaska Native Claims Settlement Act
(85 Stat. 688), and Indian allotments.
(h) Unserved and/or underserved
Tribal land(s). Those Tribal lands with
Wireless Radio Services coverage to no
more than 65 percent of the population
of the Tribal land area based on the
most recently available U.S. Census
Data.
§ 1.1003
Tribal Licensing Priority.
During a window announced by the
Commission for the filing of
applications for a Tribal licensing
priority, a qualifying Tribal entity
having jurisdiction over unserved or
underserved Tribal lands within the
geographic area of a Wireless Radio
Service license that has not been
assigned, may submit a long-form
license application for an authorization
to use the Tribal land portion of that
license. In the event that license
applications filed by qualifying Tribal
entities are mutually exclusive, the
Commission will resolve these mutually
exclusive applications by means of a
competitive bidding process open only
to those qualifying Tribal entities.
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§ 1.1004
Harbor.
Tribal Lands Construction Safe
Satisfaction of Construction
Requirements through Service to Tribal
Lands. A Wireless Radio Licensee with
Tribal lands within the geographic area
of its license will be deemed to have
satisfied its construction obligations for
its entire service area if it deploys
coverage to at least 75% of the
geographic area of such Tribal lands.
[FR Doc. 2011–7825 Filed 4–1–11; 8:45 am]
BILLING CODE 6712–01–P
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FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Parts 1 and 64
[CG Docket No. 11–47; FCC 11–38]
Contributions to the
Telecommunications Relay Service
Fund
Federal Communications
Commission.
ACTION: Proposed rule.
AGENCY:
In this document, the
Commission proposes rules to
implement the ‘‘Twenty-First Century
Communications and Video
Accessibility Act of 2010’’ (CVAA)
which requires each interconnected
voice over Internet Protocol (VoIP)
service provider and each provider of
non-interconnected VoIP service to
participate in and contribute to the
Telecommunications Relay Services
(TRS) Fund. The law directs that within
one year after the date of enactment of
the CVAA, such VoIP providers shall
participate in and contribute to the
Fund in a manner prescribed by the
Commission by regulation. The
regulations must oblige such
participation in a manner that is
consistent with and comparable to the
obligations of other contributors to the
fund.
DATES: Comments are due on or before
May 4, 2011. Reply comments are due
on or before May 19, 2011. Written
comments on the proposed information
collection requirements, subject to the
Paperwork Reduction Act (PRA) of
1995, Public Law 104–13, should be
submitted on or before June 3, 2011.
ADDRESSES: You may submit comments,
identified by [CG Docket No. 11–47], by
any of the following methods:
• Electronic Filers: Comments may be
filed electronically using the Internet by
accessing the Commission’s Electronic
Comment Filing System (ECFS) https://
fjallfoss.fcc.gov/ecfs2/ or the Federal
eRulemaking Portal: https://
www.regulations.gov. Filers should
follow the instructions provided on the
Web site for submitting comments and
transmit one electronic copy of the
filing to each docket number referenced
in the caption, which in this case is CG
Docket No. 11–47. For ECFS filers, in
completing the transmittal screen, filers
should include their full name, U.S.
Postal Service mailing address, and the
applicable docket number.
• Parties may also submit an
electronic comment by Internet e-mail.
To get filing instructions, filers should
send an e-mail to ecfs@fcc.gov, and
SUMMARY:
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include the following words in the body
of the message, ‘‘get form <your e-mail
address>.’’ A sample form and
directions will be sent in response.
• Paper Filers: Parties who choose to
file by paper must file an original and
four copies of each filing. In addition,
parties must send one copy to the
Commission’s duplicating contractor,
Best Copy and Printing, Inc., 445 12th
Street, SW., Washington, DC 20554, or
via e-mail to fcc@bcpiweb.com. Filings
can be sent by hand or messenger
delivery, by commercial overnight
courier, or by first-class or overnight
U.S. Postal Service mail. All filings
must be addressed to the Commission’s
Secretary, Office of the Secretary,
Federal Communications Commission.
• All hand-delivered or messengerdelivered paper filings for the
Commission’s Secretary must be
delivered to FCC Headquarters at 445
12th St., SW., Room TW–A325,
Washington, DC 20554. All hand
deliveries must be held together with
rubber bands or fasteners.
• Envelopes must be disposed of
before entering the building. The filing
hours are 8 a.m. to 7 p.m.
• Commercial overnight mail (other
than U.S. Postal Service Express Mail
and Priority Mail) must be sent to 9300
East Hampton Drive, Capitol Heights,
MD 20743. U.S. Postal Service firstclass, Express, and Priority mail must be
addressed to 445 12th Street, SW.,
Washington DC 20554.
In addition, document FCC 11–38
contains proposed information
collection requirements subject to the
PRA. It will be submitted to the Office
of Management and Budget (OMB) for
review under section 3507 of the PRA.
OMB, the general public, and other
Federal agencies are invited to comment
on the proposed information collection
requirements contained in this
document. PRA comments should be
submitted to Cathy Williams, Federal
Communications Commission via e-mail
at PRA@fcc.gov and
Cathy.Williams@fcc.gov and Nicholas A.
Fraser, Office of Management and
Budget via fax at 202–395–5167 or via
e-mail to
Nicholas_A._Fraser@omb.eop.gov.
FOR FURTHER INFORMATION CONTACT:
Rosaline Crawford, Consumer and
Governmental Affairs Bureau, Disability
Rights Office, at (202) 418–2075 or
e-mail Rosaline.Crawford@fcc.gov.
For additional information concerning
the PRA information collection
requirements contained in this
document, contact Cathy Williams,
Federal Communications Commission,
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Federal Register / Vol. 76, No. 64 / Monday, April 4, 2011 / Proposed Rules
at (202) 418–2918, or via e-mail
Cathy.Williams@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a
summary of the Commission’s
Contributions to the
Telecommunications Relay Service
Fund, Notice of Proposed Rulemaking
(NPRM), document FCC 11–38, adopted
March 2, 2011, released March 3, 2011,
in CG Docket No. 11–47.
The full text of document FCC 11–38
and copies of any subsequently filed
documents in this matter will be
available for public inspection and
copying via ECFS, and during regular
business hours at the FCC Reference
Information Center, Portals II, 445 12th
Street, SW., Room CY–A257,
Washington, DC 20554. They may also
be purchased from the Commission’s
duplicating contractor, Best Copy and
Printing, Inc., Portals II, 445 12th Street,
SW., Room CY–B402, Washington, DC
20554, telephone: (800) 378–3160, fax:
(202) 488–5563, or Internet: https://
www.bcpiweb.com. Document FCC 11–
38 can also be downloaded in Word or
Portable Document Format (PDF) at
https://www.fcc.gov/cgb/dro/
trs.html#orders. To request materials in
accessible formats for people with
disabilities (Braille, large print,
electronic files, audio format), send an
e-mail to fcc504@fcc.gov or call the
Consumer and Governmental Affairs
Bureau at 202–418–0530 (voice), 202–
418–0432 (TTY). To view a copy of this
information collection request (ICR)
submitted to OMB: (1) Go to the Web
page https://www.reginfo.gov/public/do/
PRAMain, (2) look for the section of the
Web page called ‘‘Currently Under
Review,’’ (3) click on the downwardpointing arrow in the ‘‘Select Agency’’
box below the ‘‘Currently Under
Review’’ heading, (4) select ‘‘Federal
Communications Commission’’ from the
list of agencies presented in the ‘‘Select
Agency’’ box, (5) click the ‘‘Submit’’
button to the right of the ‘‘Select
Agency’’ box, (6) when the list of FCC
ICRs currently under review appears,
look for the Title of this ICR and then
click on the ICR Reference Number. A
copy of the FCC submission to OMB
will be displayed.
Pursuant to 47 CFR 1.1200 et. seq.,
this matter shall be treated as a ‘‘permitbut-disclose’’ proceeding in accordance
with the Commission’s ex parte rules.
Persons making oral ex parte
presentations are reminded that
memoranda summarizing the
presentations must contain summaries
of the substances of the presentations
and not merely a listing of the subjects
discussed. More than a one or two
sentence description of the views and
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arguments presented is generally
required. Other rules pertaining to oral
and written ex parte presentations in
permit-but-disclose proceedings are set
forth in 47 CFR 1.1206 (b).
Initial Paperwork Reduction Act of
1995 Analysis
The Commission, as part of its
continuing effort to reduce paperwork
burdens, invites the general public and
OMB to comment on the proposed
information collection requirements
contained in this document, as required
by the PRA. Public and agency
comments are due June 3, 2011.
Comments should address: (a) Whether
the proposed collection of information
is necessary for the proper performance
of the functions of the Commission,
including whether the information shall
have practical utility; (b) the accuracy of
the Commission’s burden estimates; (c)
ways to enhance the quality, utility, and
clarity of the information collected; (d)
ways to minimize the burden of the
collection of information on the
respondents, including the use of
automated collection techniques or
other forms of information technology;
and (e) ways to further reduce the
information collection burden on small
business concerns with fewer than 25
employees. In addition, pursuant to the
Small Business Paperwork Relief Act of
2002, Public Law 107–198, see 44 U.S.C.
3506 (c)(4), the Commission seeks
specific comment on how it may
‘‘further reduce the information
collection burden for small business
concerns with fewer than 25
employees.’’
OMB Control Number: 3060–0855.
Title: Telecommunications Reporting
Worksheets and Related Collections.
Form No.: FCC Forms 499–A and
499–Q.
Type of Review: Revision of a
currently approved collection.
Respondents: Businesses or other forprofit entities; Not-for-profit
institutions.
Number of Respondents and
Responses: 8,183 respondents and
46,957 responses.
Estimated Time per Response: .25
hours to 25 hours.
Frequency of Response: Annual, onoccasion and quarterly reporting
requirement; Recordkeeping
requirement; Third party disclosure
requirement.
Obligation to Respond: Mandatory.
Statutory authority for this information
collection is contained in sections 151,
154(i), 154(j), 155, 157, 201, 205, 214,
225, 254, 303(r), 715 and 719 of the Act,
47 U.S.C. 151, 154(i), 154(j), 155, 157,
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201, 205, 214, 225, 254, 303(r), 616, and
620.
Total Annual Burden: 313,881 hours.
Total Annual Costs: None.
Nature and Extent of Confidentiality:
The Commission will allow respondents
to certify that data contained in their
submissions is privileged or
confidential commercial or financial
information and that disclosure of such
information would likely cause
substantial harm to the competitive
position of the entity filing the FCC
worksheets. If the Commission receives
a request for or proposes to disclose the
information, the respondent would be
required to make the full showing
pursuant to the Commission’s rules for
withholding from public inspection
information submitted to the
Commission.
Privacy Act Impact Assessment: No
impact(s).
Needs and Uses: In document FCC
11–38, the Commission proposes rules
to require contributions to the
Telecommunications Relay Service
Fund (TRS Fund) by noninterconnected Voice over Internet
Protocol (VoIP) service providers with
interstate end-user revenues. In section
103(b) of the CVAA, Congress added a
new section 715 to the Communications
Act of 1934, as amended (the Act),
which directs the Commission, within
one year after the date of enactment of
the CVAA, to require each
interconnected VoIP service provider
and each provider of noninterconnected VoIP service to
participate in and contribute to the TRS
Fund established in § 64.604(c)(5)(iii) of
the Commission’s rules, as in effect on
the date of enactment of such Act, in a
manner, to be prescribed by the
Commission by regulation, that is
consistent with and comparable to the
obligations of other contributors to the
TRS Fund. In 2007, the Commission
added interconnected VoIP service
providers to the providers of interstate
and international telecommunications
services that contribute to the TRS
Fund. See VoIP TRS Order, published at
72 FR 43546, August 6, 2007.
The NPRM proposes to extend these
obligations to non-interconnected VoIP
service providers. This would require
them to register using blocks 1, 2, and
6 of the FCC Form 499–A, and to
annually file the completed form with
the Commission. The NPRM makes
other proposals regarding the TRS Fund
rules that do not contain any paperwork
requirements.
Synopsis
1. In document FCC 11–38, the
Commission proposes rules to
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implement section 103(b) of the CVAA,
Public Law 111–260. The CVAA added
a new section 715 to the Act which
requires each interconnected VoIP
service provider and each provider of
non-interconnected VoIP service to
participate in and contribute to the TRS
Fund. Section 715 of the Act also
requires the Commission to adopt
regulations to provide for obligations of
such providers that are consistent with
and comparable to the obligations of
other contributors to the TRS Fund.
Currently, providers of interstate and
international telecommunications
services and interconnected VoIP
service contribute to the TRS Fund but
non-interconnected VoIP providers do
not. In document FCC 11–38, the
Commission proposes: to conform the
definition of ‘‘interconnected VoIP
service with the definition in the CVAA
and to define ‘‘non-interconnected VoIP
service’’; amend the Commission’s rules
to specifically require interconnected
and non-interconnected VoIP service
providers to contribute to the TRS Fund
in a manner that is consistent with and
comparable to the obligations of other
contributors to the Fund; amend the
Commission’s rules to apply the $25 per
year minimum contribution requirement
only to contributors who have subject
revenues; and make other editorial
changes to the Commission’s Rules
deemed appropriate and necessary.
Document FCC 11–38 also seeks
comment on issues relating to the
provision of free services,
administrative costs of providers,
possible zero and de minimis
contributions, registration requirements,
the completion and submission of
Telecommunications Reporting
Worksheets (FCC Form 499–A),
adopting an interim safe harbor
percentage for calculating interstate
end-user revenues, reporting billed or
collected revenues, and the
implementation deadline.
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Background
Interconnected VoIP Services
2. In 2007, the Commission extended
section 225’s TRS requirements to
interconnected VoIP service providers,
including that such providers must
contribute to the TRS Fund. Since 2006,
interconnected VoIP service providers
have been required to report their
annual interstate end-user
telecommunications revenue
information on FCC Form 499–A for the
purpose of the Universal Service Fund
(USF) contribution requirements.
3. Providers of ‘‘non-interconnected
VoIP service’’ have not been required to
contribute to the TRS Fund and have
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not been required to register or report
revenues through the annual filing of
FCC Form 499–A for any purpose.
Examples of VoIP services that are not
within the Commission’s definition of
‘‘interconnected VoIP’’ include one-way
VoIP services (i.e., services that enable
users to terminate calls to the Public
Switched Telephone Network (PSTN),
but do not permit users to receive calls
that originate on the PSTN, or enable
users to receive calls from the PSTN, but
do not permit the user to make calls
terminating to the PSTN) and IP-based
voice services that do not require a
broadband connection.
Discussion
4. The CVAA defines ‘‘noninterconnected VoIP’’ service as a
service that ‘‘enables real-time voice
communications that originate from or
terminate to the user’s location using
Internet protocol or any successor
protocol; and requires Internet protocol
compatible customer premises
equipment; and does not include any
service that is an interconnected VoIP
service’’.
5. Section 9.3 of the Commission’s
rules defines ‘‘interconnected VoIP
service’’ as a service that enables realtime, two-way voice communications;
requires a broadband connection from
the user’s location; requires Internet
protocol-compatible customer premises
equipment (‘‘CPE’’); and permits users
generally to receive calls that originate
on the PSTN and to terminate calls to
the PSTN. Section 101 of the CVAA
requires the Commission to define
‘‘interconnected VoIP service’’ as that
term is defined under § 9.3 of the
Commission’s rules, ‘‘as such section
may be amended from time to time.’’
Document FCC 11–38 proposes to
amend the TRS rules to remove the
actual text of the definition, and instead
codify the following language provided
in the CVAA: ‘‘The term ‘interconnected
VoIP service’ has the meaning given
such term under § 9.3 of title 47, Code
of Federal Regulations, as such section
may be amended from time to time.’’ It
seeks comment on this proposal.
Participation in and Contribution to the
TRS Fund
6. Carriers and interconnected VoIP
service providers are currently required
to contribute the TRS Fund and, since
2007, interconnected VoIP service
providers have been reporting revenues
for this purpose on FCC Form 499–A.
The NPRM proposes to continue using
that form for interconnected VoIP
service and to extend that requirement
to non-interconnected VoIP service
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providers. It seeks comment on this
proposal.
7. The current FCC Form 499–A and
instructions are not designed to collect
revenue or other information from
providers of ‘‘non-interconnected VoIP
services.’’ The NPRM proposes that the
Wireline Competition Bureau, in
consultation with the Commission’s
Consumer and Governmental Affairs
Bureau, make any revisions to the FCC
Form 499–A or its instructions that may
be necessary to effectuate the
requirements of section 715 of the Act.
It seeks comment on this proposal.
8. Revenue Base. Currently,
contributions to the TRS Fund are
assessed based on ‘‘interstate end-user
telecommunications revenues.’’ The
NPRM proposes to require noninterconnected VoIP service providers
to report their interstate end-user
revenues as ‘‘telecommunications
revenues’’ on the FCC Form 499–A, for
the limited purpose of determining
required TRS Fund contributions, and
to contribute to the TRS Fund.
Requiring providers of noninterconnected VoIP services to report
interstate end-user revenues as
‘‘telecommunications revenues’’ would
be consistent with how interconnected
VoIP providers have been reporting
assessable revenues on the FCC Form
499–A.
9. Because some VoIP service
providers offer some or all of their
services free to the public, the NPRM
asks for comment on how the
Commission can ensure their
participation and contributions are
consistent with and comparable to the
obligations of other contributors to the
TRS Fund. For example, it asks whether
it would be appropriate to assess
contributions from providers of free
VoIP services based on revenues from
sources other than the ‘‘interstate enduser revenues of such services’’ such as
revenues from advertisers, donors, or
other revenue sources. The NPRM also
seeks input on whether and how to
account for end-user revenues
associated with VoIP services when
those services are provided as part of or
in combination with other services such
as Internet-based customer services or
video games that generate revenue, or
can the revenues associated with the
VoIP service be disaggregated from the
revenue, if any, associated with the nonVoIP service. The NPRM seeks comment
on these issues.
10. Administrative Costs to the
Provider. The Senate Report to the
CVAA permits the Commission to
‘‘consider administrative costs to the
provider when calculating
contributions’’ and to ‘‘determine that an
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obligation for any one provider could be
zero or a de minimis amount.’’ The
NPRM seeks comment on the types of
‘‘administrative costs to the provider’’
that could be reported and how these
may be considered when calculating
contributions. It also seeks comment on
how ‘‘administrative costs to the
provider’’ might be considered when
calculating contributions for a TRS
Fund contributor that provides free
services and therefore reports no subject
revenues. Additionally, if
administrative costs of interconnected
or non-interconnected VoIP service
providers are taken into consideration
when calculating contributions, the
NPRM seeks comment on the extent to
which they should be considered any
differently than the administrative costs
of carriers or others required to
contribute to the TRS Fund under the
Commission’s rules.
11. Minimum Contribution
Requirement. Currently, carriers and
interconnected VoIP service providers
are required to file with USAC, by April
1st of each year, a completed FCC Form
499–A, which is used in part to
calculate contributions to the TRS Fund.
Filers are instructed to enter ‘‘0’’ on any
line for which the filer had no revenues
for the year. The NPRM seeks comment
on whether a service that is offered
wholly for free to the public would
result in a filer reporting no end-user
revenues for such service for the year.
12. The Commission has previously
held that the $25 minimum TRS Fund
contribution requirement applies to all
telecommunications carriers that have
end-user revenues. The NPRM
tentatively concludes that VoIP service
providers that have no subject revenue
for the respective reporting year should
not be subject to this minimum
contribution amount and seeks
comment on this tentative conclusion.
Alternatively, the NPRM seeks comment
on whether VoIP service providers that
report no subject revenue for the
reporting year should be assessed a de
minimis contribution amount.
13. Conforming Amendments to
Rules. The NPRM also proposes making
conforming amendments to the
Commission’s rules. The NPRM
proposes, and seeks comment on,
replacing the terms ‘‘carrier,’’ ‘‘carriers,’’
and ‘‘service providers’’ in
§ 64.604(c)(5)(iii)(B) of the
Commission’s rules with the term
‘‘contributor(s)’’ and replacing ‘‘interstate
end-user telecommunications revenues’’
in § 64.604(c)(5)(iii)(B) of the
Commission’s rules and ‘‘interstate enduser revenues of such services’’ in
§ 64.604(c)(5)(iii)(B) of the
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Commission’s rules with the phrase
‘‘revenues subject to contributions.’’
14. Meaning of ‘‘Participate In.’’
Section 715 of the Act requires each
interconnected VoIP service provider
and each provider of noninterconnected VoIP service to
‘‘participate in and contribute to the
[TRS] Fund.’’ The NPRM tentatively
concludes that the term ‘‘participate in’’
includes the requirement for
contributors to complete and submit a
Telecommunications Reporting
Worksheet (FCC Form 499–A) annually
and seeks comment on this conclusion
and the meaning of the term ‘‘participate
in’’ in this context.
15. Contributor Registration. The
process of completing and submitting
the FCC Form 499–A includes a
registration process of the filing entity.
All current TRS Fund contributors have
completed this registration process. The
NPRM tentatively concludes that
requiring all providers of noninterconnected VoIP services to
similarly register with the Commission
and designate a District of Columbia
agent for service of process using the
FCC Form 499–A in accordance with its
instructions will facilitate the
Commission’s enforcement of TRS Fund
contribution obligations and is
consistent with the congressional
mandate for consistent and comparable
obligations. The NPRM proposes to
amend the registration requirements in
§ 64.1195 of the Commission’s rules to
include non-interconnected VoIP
service providers or to adapt those rules
for non-interconnected VoIP service
providers under the Commission’s TRS
rules. Finally, the NPRM seeks comment
on whether § 1.47(h) of the
Commission’s rules should be amended
to include providers of noninterconnected VoIP services among
those required to designate a District of
Columbia agent for service of process.
16. Safe Harbor. The NPRM seeks
comment on whether, for purposes of
TRS Fund contribution calculations, a
non-interconnected VoIP service
provider should be permitted to report
its interstate end-user revenues in FCC
Form 499–A by using actual revenues,
using a traffic study, or using the
interim safe harbor percentage (64.9
percent).
17. Billed or Collected Revenues. FCC
Form 499–A filers are instructed to
provide information about interstate
end-user telecommunications revenues
that are ‘‘billed’’ (or ‘‘earned’’) or
‘‘uncollectible’’ rather than revenues
‘‘collected.’’ The NPRM seeks comment
on whether calculations of TRS Fund
contributions should be based on each
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contributor’s collected revenues rather
than billed revenues.
18. Implementation Deadline. Section
715 of the Act requires ‘‘[w]ithin one
year after the date of enactment of the
CVAA’’ each interconnected VoIP
service provider and each provider of
non-interconnected VoIP service to
participate in and contribute to the TRS
Fund ‘‘in a manner prescribed by the
Commission by regulation.’’ The oneyear deadline has already been met with
regard to interconnected VoIP service
providers because they have been
reporting revenues and contributing to
the TRS Fund annually since 2007. The
NPRM proposes to require noninterconnected VoIP service providers
to register and designate a District of
Columbia agent for service of process by
September 30, 2011, using the FCC
Form 499–A in accordance with its
instructions. It also proposes to require
all non-interconnected VoIP service
providers to complete and submit FCC
Form 499–A by April 1, 2012 to report
interstate end-user revenues for such
services for the period from October 1
through December 31, 2011. Finally, it
proposes to begin assessing noninterconnected VoIP service providers
for TRS contributions based on revenues
reported for the October through
December 2011 period for the 2012
through 2013 TRS Fund year (July 1,
2012 through June 30, 2013). The NPRM
seeks comments on these proposals.
Initial Regulatory Flexibility Analysis
19. The Regulatory Flexibility Act of
1980, as amended (RFA), requires that
an initial regulatory flexibility analysis
be prepared for notice-and-comment
rulemaking proceedings, unless the
agency certifies that ‘‘the rule will not,
if promulgated, have a significant
economic impact on a substantial
number of small entities.’’ The
Commission has certified that the rules
proposed in document FCC 11–38, if
promulgated, will not have a significant
economic impact on a substantial
number of small entities.
20. The RFA generally defines the
term ‘‘small entity’’ as having the same
meaning as the terms ‘‘small business,’’
‘‘small organization,’’ and ‘‘small
governmental jurisdiction.’’ In addition,
the term ‘‘small business’’ has the same
meaning as the term ‘‘small business
concern’’ under the Small Business Act.
A ‘‘small business concern’’ is one that:
(1) Is independently owned and
operated; (2) is not dominant in its field
of operation; and (3) satisfies any
additional criteria established by the
Small Business Administration (SBA).
21. In document FCC 11–38, the
Commission seeks comment on its
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proposal to implement section 103(b) of
the CVAA, signed into law by President
Obama on October 8, 2010, that requires
the Commission to establish rules
requiring each interconnected VoIP
service provider and each provider of
non-interconnected VoIP service to
participate in and contribute to the
interstate TRS Fund beginning within
one year of the enactment of the CVAA.
22. The TRS Fund compensates
providers of TRS for their reasonable
costs of providing the service on an
interstate basis. Document FCC 11–38
seeks comment on, and proposes rules,
to implement section 103(b) of the
CVAA and to require providers of noninterconnected VoIP service to
participate in and contribute to the TRS
Fund in a manner that is consistent with
and comparable to other contributors.
Document FCC 11–38 also seeks
comment on issues relating to the
possible zero and de minimis
contributions in connection with the
provision of free services and the
administrative costs of providers,
registration requirements, the
completion and submission of
Telecommunications Reporting
Worksheets (FCC Form 499–A), the
adoption of an interim safe harbor
percentage for calculating interstate
end-user revenues, and the
implementation deadline.
23. Specifically, document FCC 11–38
proposes: to require providers of noninterconnected VoIP service to register
with the Commission and designate a
District of Columbia agent for service of
process for purposes of contributing to
the TRS Fund; to complete and file FCC
Form 499–A annually; to permit
providers of non-interconnected VoIP
service to determine interstate end-user
revenues by using actual revenues, a
traffic study or to utilize a safe harbor;
and to exempt service providers with no
end user revenues for the reporting year
from the $25 minimum contribution
requirement to the TRS Fund. It also
seeks comment on whether sources of
revenue other than interstate end-user
revenues (e.g., advertising, donations)
should be considered when a service
provider has no end-user revenues (i.e.,
when services are provided to the
public for free) and whether TRS Fund
contributions should be based on each
contributor’s collected revenues rather
than billed revenues.
24. The Commission proposes to
require that non-interconnected VoIP
service providers register and designate
a District of Columbia agent for service
of process by filling out blocks 1, 2, and
6 of the FCC Form 499–A and to
annually file the completed Form with
the Commission. This is consistent with
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the Congressional mandate in section
103(b) of the CVAA to require providers
of non-interconnected VoIP service to
participate in and contribute to the TRS
Fund in a manner that is consistent with
and comparable to the obligations of
other contributors to the Fund. Such
reporting would be for the limited
purpose of determining required TRS
Fund contributions and would not
prejudge issues concerning the
appropriate regulatory classification of
VoIP services. It has previously been
estimated that filling out the FCC Form
499–A takes 13.5 hours (i.e., less than
two work days of a single full-time
employee) annually. Thus, filling out
the form does not have a significant
economic impact upon small entities.
25. Document FCC 11–38 seeks
comment on how the Commission can
best ensure that the obligations of VoIP
service providers that offer some or all
of their interstate services free to the
public are consistent with and
comparable to the obligations of other
contributors to the TRS Fund. Section
225(d)(3)(B) of the Act requires the
Commission to adopt regulations that
costs caused by interstate
telecommunications relay service be
recovered from ‘‘all subscribers’’ for
every interstate service. Document FCC
11–38 seeks comment on whether it
would be necessary or appropriate to
assess contributions from providers of
free VoIP services based on revenues
from sources other than the ‘‘interstate
end-user revenues of such services,’’
such as advertising and donor
contributions, or whether TRS Fund
contributions of VoIP providers should
be based solely on interstate end-user
revenues, even if that results in a zero
contribution. Because the typical
contribution historically has been
slightly less than 1% of revenues
annually, this will not have a significant
economic impact upon small entities.
26. Additionally, the TRS rules
currently impose a minimum $25
contribution on all entities, regardless of
their reported revenues. Document FCC
11–38 proposes that if the Commission
determines that contributions to the
TRS Fund are to be based solely on
interstate end-user revenues, VoIP
providers and other carriers subject to
TRS Fund contribution requirements
with a zero contribution calculation
(i.e., they either did not charge for enduser service or generated some end-user
revenue but it was offset by
administrative costs that cancelled out
the revenue) not be subject to the
minimum $25 contribution. If this
proposal is not adopted, alternatively,
document FCC 11–38 seeks comment on
whether a VoIP service provider that
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reports no revenue for the reporting year
should be assessed a ‘‘de minimis’’
contribution amount. Even if the
Commission applies the minimum $25
annual contribution to the TRS Fund to
providers with a zero contribution
calculation, it would not constitute a
significant economic impact upon small
entities.
27. The Commission has previously
recognized that some interconnected
VoIP service providers may have
difficulty complying with the end-user
revenue reporting requirements because
they do not have the ability to identify
whether calls are interstate. As a result,
the Commission established a safe
harbor which estimated the percentage
of interconnected VoIP service revenues
attributable to interstate calls to be
64.9%. These VoIP service providers
may report their interstate end-user
revenues on the FCC Form 499–A by
using actual revenues, a traffic study or
the safe harbor. Document FCC 11–38
seeks comment on whether the
Commission should also apply the safe
harbor to non-interconnected VoIP
service providers. Because the safe
harbor is used when it reduces TRS
Fund contributions, application of it to
non-interconnected VoIP services will
not have any significant negative
economic impact upon small entities.
28. Document FCC 11–38 also
requests input on whether to modify the
FCC Form 499–A to ask filers to provide
information on ‘‘collected’’ (i.e. earned)
revenues rather than, as currently, on
‘‘billed’’ (i.e., potentially uncollectible)
revenues. This would harmonize the
basis for TRS Fund contributions with
those for the Universal Service Fund,
which bases contributions on
‘‘collected’’ revenues. Because it would
relieve providers of basing their
contribution to the TRS Fund on billed
revenues, it would reduce TRS Fund
contributions and therefore would not
have any significant negative economic
impact upon small entities.
29. Finally, the CVAA requires that
VoIP service providers begin
participating in, and contributing to, the
TRS Fund within one year of the date
of the CVAA’s enactment. This deadline
has been met with regard to
interconnected VoIP service providers
who have been participating in the
Fund since 2007. To meet the statutory
deadline, document FCC 11–38
proposes to require non-interconnected
VoIP service providers to register by
September 30, 2011 by completing
blocks 1, 2 and 6 of the FCC Form 499–
A, and to complete and submit the Form
by April 1, 2012, reporting their enduser revenues for the period from
October 1 through December 31, 2011.
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This uniform registration deadline is
mandated by statute and will not have
a significant adverse economic impact
upon small entities.
30. With regard to whether a
substantial number of small entities
may be economically impacted by the
requirements proposed in document
FCC 11–38, the Commission notes that
a substantial number of small entities
will be likely be affected; however, for
the reasons stated above, the cumulative
economic impact on such entities will
be de minimis. Most participating
entities are likely to meet the definition
of a small entity as a ‘‘small
organization.’’ VoIP service providers
are included in the census business
category ‘‘All Other
Telecommunications.’’ This category
comprises ‘‘establishments primarily
engaged in providing specialized
telecommunications services, such as
satellite tracking, communications
telemetry, and radar station operation.
This industry also includes
establishments primarily engaged in
providing satellite terminal stations and
associated facilities connected with one
or more terrestrial systems and capable
of transmitting telecommunications to,
and receiving telecommunications from,
satellite systems. Establishments
providing Internet services or VoIP
services via client-supplied
telecommunications connections are
also included in this industry.’’ For this
category, Census Bureau data for 2007
show that there were a total of 2,383
firms that operated for the entire year.
Of this total, 2,347 firms had annual
receipts of under $25 million and 12
firms had annual receipts of $25 million
to $49,999,999. Consequently, the
Commission estimates that the majority
of All Other Telecommunications firms
are small entities that might be affected
by our action.
31. Historically, the contributions to
the TRS Fund have totaled slightly less
than 1% of revenues. Moreover, many
non-interconnected VoIP service
providers offer their services for free
and, unless revenue sources other than
end-user interstate revenues are
included, will have no annual
contribution or the de minimis $25
contribution, depending on the outcome
of this proceeding. Accordingly, the
Commission concludes that a zero or
$25 contribution is a de minimis
amount.
32. Therefore, based on the foregoing
analysis of all foreseeable economic
impacts, the Commission certifies that
the proposals in document FCC 11–38,
if adopted, will not have a significant
economic impact on a substantial
number of small entities.
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33. The Commission will send a copy
of the document FCC 11–38, including
a copy of this Initial Regulatory
Flexibility Certification, to the Chief
Counsel for Advocacy of the SBA.
Ordering Clauses
Pursuant to the authority contained in
sections 1, 4(i), 4(j), 225, and 715 of the
Communications Act of 1934, as
amended, 47 U.S.C. 151, 154(i), 154(j),
225, and 616, document FCC 11–38 IS
ADOPTED. The Commission’s
Consumer and Governmental Affairs
Bureau, Reference Information Center,
SHALL SEND a copy of document FCC
11–38, including the Initial Regulatory
Flexibility Certification, to the Chief
Counsel for Advocacy of the Small
Business Administration.
List of Subjects
47 CFR Part 1
Communications common carriers,
Reporting and recordkeeping
requirements, Telecommunications.
47 CFR Part 64
Reporting and recordkeeping
requirements, Telecommunications,
Telephone.
Federal Communications Commission.
Bulah Wheeler,
Deputy Manager.
Proposed Rules
For the reasons discussed in the
preamble, the Federal Communications
Commission proposes to amend 47 CFR
parts 1 and 64 as follows:
PART 1—PRACTICE AND
PROCEDURE
1. The authority citation for part 1
continues to read as follows:
Authority: 15 U.S.C. 79 et seq.; 47 U.S.C.
151, 154(i), 154(j), 155, 157, 225, 303(r), and
309.
2. In § 1.47, revise paragraph (h) to
read as follows:
§ 1.47 Service of documents and proof of
service.
*
*
*
*
*
(h) Every common carrier and
interconnected VoIP provider, as
defined in § 54.5 of this chapter, and
non-interconnected VoIP provider, as
defined in § 64.601(a)(15) of this
chapter, that is subject to the
Communications Act of 1934, as
amended, shall designate an agent in the
District of Columbia, and may designate
additional agents if it so chooses, upon
whom service of all notices, process,
orders, decisions, and requirements of
the Commission may be made for and
on behalf of such carrier, interconnected
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18495
VoIP provider, or non-interconnected
VoIP provider in any proceeding before
the Commission. Such designation shall
include, for the carrier, interconnected
VoIP provider, or non-interconnected
VoIP provider and its designated agents,
a name, business address, telephone or
voicemail number, facsimile number,
and, if available, Internet e-mail
address. Such carrier, interconnected
VoIP provider, or non-interconnected
VoIP provider shall additionally list any
other names by which it is known or
under which it does business, and, if the
carrier, interconnected VoIP provider, or
non-interconnected VoIP provider is an
affiliated company, the parent, holding,
or management company. Within thirty
(30) days of the commencement of
provision of service, such carrier,
interconnected VoIP provider, or noninterconnected VoIP provider shall file
such information with the Chief of the
Enforcement Bureau’s Market Disputes
Resolution Division. Such carriers,
interconnected VoIP providers, and
non-interconnected VoIP providers may
file a hard copy of the relevant portion
of the Telecommunications Reporting
Worksheet, as delineated by the
Commission in the Federal Register, to
satisfy this requirement. Each
Telecommunications Reporting
Worksheet filed annually by a common
carrier, interconnected VoIP provider, or
non-interconnected VoIP provider must
contain a name, business address,
telephone or voicemail number,
facsimile number, and, if available,
Internet e-mail address for its
designated agents, regardless of whether
such information has been revised since
the previous filing. Carriers,
interconnected VoIP providers, and
non-interconnected VoIP providers
must notify the Commission within one
week of any changes in their
designation information by filing
revised portions of the
Telecommunications Reporting
Worksheet with the Chief of the
Enforcement Bureau’s Market Disputes
Resolution Division. A paper copy of
this designation list shall be maintained
in the Office of the Secretary of the
Commission. Service of any notice,
process, orders, decisions or
requirements of the Commission may be
made upon such carrier, interconnected
VoIP provider, or non-interconnected
VoIP provider by leaving a copy thereof
with such designated agent at his office
or usual place of residence. If such
carrier, interconnected VoIP provider, or
non-interconnected VoIP provider fails
to designate such an agent, service of
any notice or other process in any
proceeding before the Commission, or of
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any order, decision, or requirement of
the Commission, may be made by
posting such notice, process, order,
requirement, or decision in the Office of
the Secretary of the Commission.
PART 64—MISCELLANEOUS RULES
RELATING TO COMMON CARRIERS
3. The authority citation for part 64 is
revised to read as follows:
Authority: 47 U.S.C. 154, 254(k); secs.
404(b)(2(B), (c), Pub. L. 104–104, 110 Stat. 56.
Interpret or apply 47 U.S.C, 201, 218, 222,
225, 226, 228, 254(k), 616, and 620, unless
otherwise noted.
Subpart F—Telecommunications Relay
Services and Related Customer
Premises Equipment for Persons With
Disabilities
4. The authority citation for subpart F
is revised to read as follows:
Authority: 47 U.S.C. 151–154; 225, 255,
303(r), 616, and 620.
5. In § 64.601, revise paragraph
(a)(10), redesignate paragraphs (a)(15)
through (a)(27) as paragraphs (a)(16)
through (a)(28), and by adding new
paragraph (a)(15) to read as follows:
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§ 64.601 Definitions and provisions of
general applicability.
(a) * * *
(10) Interconnected VoIP service. The
term ‘‘interconnected VoIP service’’ has
the meaning given such term under § 9.3
of title 47, Code of Federal Regulations,
as such section may be amended from
time to time.
*
*
*
*
*
(15) Non-interconnected VoIP service.
The term ‘‘non-interconnected VoIP
service’’—
(i) means a service that—
(A) enables real-time voice
communications that originate from or
terminate to the user’s location using
Internet protocol or any successor
protocol; and
(B) requires Internet protocol
compatible customer premises
equipment; and
(ii) does not include any service that
is an interconnected VoIP service.
*
*
*
*
*
6. In § 64.604, revise paragraphs
(c)(5)(iii)(A) and (c)(5)(iii)(B), remove
paragraph (c)(5)(iii)(D), redesignate
paragraph (c)(5)(iii)(C) as paragraph
(c)(5)(iii)(D), and add new paragraph
(c)(5)(iii)(C) to read as follows:
§ 64.604
*
Mandatory minimum standards.
*
*
(c) * * *
(5) * * *
(iii) * * *
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(A) Contributions. Every carrier
providing interstate telecommunications
services (including interconnected VoIP
service providers pursuant to
§ 64.601(b)) and every provider of noninterconnected VoIP service shall
contribute to the TRS Fund on the basis
of interstate end-user
telecommunications revenues as
described herein. Contributions shall be
made by all carriers who provide
interstate services, including, but not
limited to, cellular telephone and
paging, mobile radio, operator services,
personal communications service (PCS),
access (including subscriber line
charges), alternative access and special
access, packet-switched, WATS, 800,
900, message telephone service (MTS),
private line, telex, telegraph, video,
satellite, intraLATA, international and
resale services. For purposes of this
paragraph, telecommunications
revenues include revenues from noninterconnected VoIP services.
(B) Contribution computations.
Contributors’ contributions to the TRS
fund shall be the product of their
subject revenues for the prior calendar
year and a contribution factor
determined annually by the
Commission. The contribution factor
shall be based on the ratio between
expected TRS Fund expenses to the
contributors’ revenues subject to
contribution. In the event that
contributions exceed TRS payments and
administrative costs, the contribution
factor for the following year will be
adjusted by an appropriate amount,
taking into consideration projected cost
and usage changes. In the event that
contributions are inadequate, the fund
administrator may request authority
from the Commission to borrow funds
commercially, with such debt secured
by future years’ contributions. Each
subject contributor that has revenues
subject to contribution must contribute
at least $25 per year. Contributors
whose annual contributions total less
than $1,200 must pay the entire
contribution at the beginning of the
contribution period. Contributors whose
contributions total $1,200 or more may
divide their contributions into equal
monthly payments. Contributors shall
complete and submit, and contributions
shall be based on, a
‘‘Telecommunications Reporting
Worksheet’’ (as published by the
Commission in the Federal Register).
The worksheet shall be certified to by an
officer of the contributor, and subject to
verification by the Commission or the
administrator at the discretion of the
Commission. Contributors’ statements
in the worksheet shall be subject to the
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provisions of section 220 of the
Communications Act of 1934, as
amended. The fund administrator may
bill contributors a separate assessment
for reasonable administrative expenses
and interest resulting from improper
filing or overdue contributions. The
Chief of the Consumer and
Governmental Affairs Bureau may
waive, reduce, modify or eliminate
contributor reporting requirements that
prove unnecessary and require
additional reporting requirements that
the Bureau deems necessary to the
sound and efficient administration of
the TRS Fund.
(C) Registration Requirements for
Providers of Non-Interconnected VoIP
Service.
(1). Applicability. A noninterconnected VoIP service provider
that will provide interstate service shall
file the registration information
described in paragraph (c)(5)(iii)(C)(2) of
this section in accordance with the
procedures described in paragraphs
(c)(5)(iii)(C)(3) and (c)(5)(iii)(C)(4) of this
section. Any non-interconnected VoIP
service provider already providing
interstate service on the effective date of
these rules shall submit the relevant
portion of its FCC Form 499–A in
accordance with paragraphs
(c)(5)(iii)(C)(2) and (c)(5)(iii)(C)(3) of this
section.
(2). Information required for purposes
of TRS Fund contributions. A noninterconnected VoIP service provider
that is subject to the registration
requirement pursuant to paragraph
(c)(5)(iii)(C)(1) of this section shall
provide the following information:
(i) The provider’s business name(s)
and primary address;
(ii) The names and business addresses
of the provider’s chief executive officer,
chairman, and president, or, in the
event that a provider does not have such
executives, three similarly senior-level
officials of the provider;
(iii) The provider’s regulatory contact
and/or designated agent;
(iv) All names that the provider has
used in the past; and
(v) The state(s) in which the provider
provides such service.
(3). Submission of registration. A
provider that is subject to the
registration requirement pursuant to
paragraph (c)(5)(iii)(C)(1) of this section
shall submit the information described
in paragraph (c)(5)(iii)(C)(2) of this
section in accordance with the
Instructions to FCC Form 499–A. FCC
Form 499–A must be submitted under
oath and penalty of perjury.
(4). Changes in information. A
provider must notify the Commission of
any changes to the information provided
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pursuant to paragraph (c)(5)(iii)(C)(2) of
this section within no more than one
week of the change. Providers may
satisfy this requirement by filing the
relevant portion of FCC Form 499–A in
accordance with the Instructions to such
form.
*
*
*
*
*
[FR Doc. 2011–7798 Filed 4–1–11; 8:45 am]
BILLING CODE 6712–01–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Part 73
[MB Docket No. 11–54, RM–11624; DA 11–
499]
Television Broadcasting Services;
Augusta, GA
Federal Communications
Commission.
ACTION: Proposed rule.
AGENCY:
The Commission has before it
a petition for rulemaking filed by
Southern Media Holdings, Inc. (‘‘SMH’’),
the licensee of station WFXG, Augusta,
Georgia, requesting the substitution of
channel 51 for channel 31 at Augusta.
SMH seeks this channel substitution as
it cannot obtain the credit necessary to
construct the channel 31 facility and
states that the money required to
construct the channel 31 facility will
instead be used to serve other aspects of
the public interest.
DATES: Comments must be filed on or
before May 4, 2011, and reply comments
on or before May 19, 2011.
ADDRESSES: Federal Communications
Commission, Office of the Secretary,
445 12th Street, SW., Washington, DC
20554. In addition to filing comments
with the FCC, interested parties should
serve counsel for petitioner as follows:
Harry C. Martin, Esq., Fletcher, Heald &
Hildreth, PLC, 1300 N. 17th Street, 11th
Floor, Arlington, VA 22209.
FOR FURTHER INFORMATION CONTACT:
Joyce L. Bernstein,
joyce.bernstein@fcc.gov, Media Bureau,
(202) 418–1600.
SUPPLEMENTARY INFORMATION: This is a
synopsis of the Commission’s Notice of
Proposed Rule Making, MB Docket No.
11–54, adopted March 15, 2011, and
released March 16, 2011. The full text
of this document is available for public
inspection and copying during normal
business hours in the FCC’s Reference
Information Center at Portals II, CY–
A257, 445 12th Street, SW.,
Washington, DC 20554. This document
will also be available via ECFS (https://
www.fcc.gov/cgb/ecfs/). (Documents
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SUMMARY:
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will be available electronically in ASCII,
Word 97, and/or Adobe Acrobat.) This
document may be purchased from the
Commission’s duplicating contractor,
Best Copy and Printing, Inc., 445 12th
Street, SW., Room CY–B402,
Washington, DC 20554, telephone
1–800–478–3160 or via e-mail https://
www.BCPIWEB.com. To request this
document in accessible formats
(computer diskettes, large print, audio
recording, and Braille), send an e-mail
to fcc504@fcc.gov or call the
Commission’s Consumer and
Governmental Affairs Bureau at (202)
418–0530 (voice), (202) 418–0432
(TTY). This document does not contain
proposed information collection
requirements subject to the Paperwork
Reduction Act of 1995, Public Law
104–13. In addition, therefore, it does
not contain any proposed information
collection burden ‘‘for small business
concerns with fewer than 25
employees,’’ pursuant to the Small
Business Paperwork Relief Act of 2002,
Public Law 107–198, see 44 U.S.C.
3506(c)(4).
Provisions of the Regulatory
Flexibility Act of 1980 do not apply to
this proceeding. Members of the public
should note that from the time a Notice
of Proposed Rule Making is issued until
the matter is no longer subject to
Commission consideration or court
review, all ex parte contacts (other than
ex parte presentations exempt under 47
CFR 1.1204(a)) are prohibited in
Commission proceedings, such as this
one, which involve channel allotments.
See 47 CFR 1.1208 for rules governing
restricted proceedings.
For information regarding proper
filing procedures for comments, see 47
CFR 1.415 and 1.420.
List of Subjects in 47 CFR Part 73
Television.
Federal Communications Commission.
Barbara A. Kreisman,
Chief, Video Division, Media Bureau.
Proposed Rule
For the reasons discussed in the
preamble, the Federal Communications
Commission proposes to amend 47 CFR
part 73 as follows:
PART 73—RADIO BROADCAST
SERVICES
1. The authority citation for part 73
continues to read as follows:
Authority: 47 U.S.C. 154, 303, 334, 336,
and 339.
§ 73.622(i)
[Amended]
2. Section 73.622(i), the PostTransition Table of DTV Allotments
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18497
under Georgia, is amended by adding
channel 51 and removing channel 31 at
Augusta.
[FR Doc. 2011–7787 Filed 4–1–11; 8:45 am]
BILLING CODE 6712–01–P
DEPARTMENT OF DEFENSE
GENERAL SERVICES
ADMINISTRATION
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
48 CFR Parts 2, 31, 32, 45, 49, 52, and
53
[FAR Case 2010–009; Docket 2010–0009;
Sequence 1]
RIN 9000–AL95
Federal Acquisition Regulation;
Government Property
Department of Defense (DoD),
General Services Administration (GSA),
and National Aeronautics and Space
Administration (NASA).
ACTION: Proposed rule.
AGENCIES:
DoD, GSA, and NASA are
proposing to amend the Federal
Acquisition Regulation (FAR) to clarify
reporting, reutilization, and disposal of
Government property and the contractor
requirements under the Government
property clause.
DATES: Interested parties should submit
written comments to the Regulatory
Secretariat at one of the addressees
shown below on or before June 3, 2011.
to be considered in the formation of the
final rule.
ADDRESSES: Submit comments in
response to FAR Case 2010–009 by any
of the following methods:
• Regulations.gov: https://
www.regulations.gov. Submit comments
via the Federal eRulemaking portal by
inputting ‘‘FAR Case 2010–009’’ under
the heading ‘‘Enter Keyword or ID’’ and
selecting ‘‘Search.’’ Select the link
‘‘Submit a Comment’’ that corresponds
with ‘‘FAR Case 2010–009.’’ Follow the
instructions provided at the ‘‘Submit a
Comment’’ screen. Please include your
name, company name (if any), and ‘‘FAR
Case 2010–009’’ on your attached
document.
• Fax: (202) 501–4067.
• Mail: General Services
Administration, Regulatory Secretariat
(MVCB), ATTN: Hada Flowers, 1275
First Street, NE., 7th Floor, Washington,
DC 20417.
Instructions: Please submit comments
only and cite FAR Case 2010–009, in all
correspondence related to this case. All
SUMMARY:
E:\FR\FM\04APP1.SGM
04APP1
]]>Agencies
[Federal Register Volume 76, Number 64 (Monday, April 4, 2011)]
[Proposed Rules]
[Pages 18490-18497]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-7798]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Parts 1 and 64
[CG Docket No. 11-47; FCC 11-38]
Contributions to the Telecommunications Relay Service Fund
AGENCY: Federal Communications Commission.
ACTION: Proposed rule.
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SUMMARY: In this document, the Commission proposes rules to implement
the ``Twenty-First Century Communications and Video Accessibility Act
of 2010'' (CVAA) which requires each interconnected voice over Internet
Protocol (VoIP) service provider and each provider of non-
interconnected VoIP service to participate in and contribute to the
Telecommunications Relay Services (TRS) Fund. The law directs that
within one year after the date of enactment of the CVAA, such VoIP
providers shall participate in and contribute to the Fund in a manner
prescribed by the Commission by regulation. The regulations must oblige
such participation in a manner that is consistent with and comparable
to the obligations of other contributors to the fund.
DATES: Comments are due on or before May 4, 2011. Reply comments are
due on or before May 19, 2011. Written comments on the proposed
information collection requirements, subject to the Paperwork Reduction
Act (PRA) of 1995, Public Law 104-13, should be submitted on or before
June 3, 2011.
ADDRESSES: You may submit comments, identified by [CG Docket No. 11-
47], by any of the following methods:
Electronic Filers: Comments may be filed electronically
using the Internet by accessing the Commission's Electronic Comment
Filing System (ECFS) https://fjallfoss.fcc.gov/ecfs2/ or the Federal
eRulemaking Portal: https://www.regulations.gov. Filers should follow
the instructions provided on the Web site for submitting comments and
transmit one electronic copy of the filing to each docket number
referenced in the caption, which in this case is CG Docket No. 11-47.
For ECFS filers, in completing the transmittal screen, filers should
include their full name, U.S. Postal Service mailing address, and the
applicable docket number.
Parties may also submit an electronic comment by Internet
e-mail. To get filing instructions, filers should send an e-mail to
ecfs@fcc.gov, and include the following words in the body of the
message, ``get form .'' A sample form and
directions will be sent in response.
Paper Filers: Parties who choose to file by paper must
file an original and four copies of each filing. In addition, parties
must send one copy to the Commission's duplicating contractor, Best
Copy and Printing, Inc., 445 12th Street, SW., Washington, DC 20554, or
via e-mail to fcc@bcpiweb.com. Filings can be sent by hand or messenger
delivery, by commercial overnight courier, or by first-class or
overnight U.S. Postal Service mail. All filings must be addressed to
the Commission's Secretary, Office of the Secretary, Federal
Communications Commission.
All hand-delivered or messenger-delivered paper filings
for the Commission's Secretary must be delivered to FCC Headquarters at
445 12th St., SW., Room TW-A325, Washington, DC 20554. All hand
deliveries must be held together with rubber bands or fasteners.
Envelopes must be disposed of before entering the
building. The filing hours are 8 a.m. to 7 p.m.
Commercial overnight mail (other than U.S. Postal Service
Express Mail and Priority Mail) must be sent to 9300 East Hampton
Drive, Capitol Heights, MD 20743. U.S. Postal Service first-class,
Express, and Priority mail must be addressed to 445 12th Street, SW.,
Washington DC 20554.
In addition, document FCC 11-38 contains proposed information
collection requirements subject to the PRA. It will be submitted to the
Office of Management and Budget (OMB) for review under section 3507 of
the PRA. OMB, the general public, and other Federal agencies are
invited to comment on the proposed information collection requirements
contained in this document. PRA comments should be submitted to Cathy
Williams, Federal Communications Commission via e-mail at PRA@fcc.gov
and Cathy.Williams@fcc.gov and Nicholas A. Fraser, Office of Management
and Budget via fax at 202-395-5167 or via e-mail to Nicholas_A._Fraser@omb.eop.gov.
FOR FURTHER INFORMATION CONTACT: Rosaline Crawford, Consumer and
Governmental Affairs Bureau, Disability Rights Office, at (202) 418-
2075 or e-mail Rosaline.Crawford@fcc.gov.
For additional information concerning the PRA information
collection requirements contained in this document, contact Cathy
Williams, Federal Communications Commission,
[[Page 18491]]
at (202) 418-2918, or via e-mail Cathy.Williams@fcc.gov.
SUPPLEMENTARY INFORMATION: This is a summary of the Commission's
Contributions to the Telecommunications Relay Service Fund, Notice of
Proposed Rulemaking (NPRM), document FCC 11-38, adopted March 2, 2011,
released March 3, 2011, in CG Docket No. 11-47.
The full text of document FCC 11-38 and copies of any subsequently
filed documents in this matter will be available for public inspection
and copying via ECFS, and during regular business hours at the FCC
Reference Information Center, Portals II, 445 12th Street, SW., Room
CY-A257, Washington, DC 20554. They may also be purchased from the
Commission's duplicating contractor, Best Copy and Printing, Inc.,
Portals II, 445 12th Street, SW., Room CY-B402, Washington, DC 20554,
telephone: (800) 378-3160, fax: (202) 488-5563, or Internet: https://
www.bcpiweb.com. Document FCC 11-38 can also be downloaded in Word or
Portable Document Format (PDF) at https://www.fcc.gov/cgb/dro/trs.html#orders. To request materials in accessible formats for people
with disabilities (Braille, large print, electronic files, audio
format), send an e-mail to fcc504@fcc.gov or call the Consumer and
Governmental Affairs Bureau at 202-418-0530 (voice), 202-418-0432
(TTY). To view a copy of this information collection request (ICR)
submitted to OMB: (1) Go to the Web page https://www.reginfo.gov/public/do/PRAMain, (2) look for the section of the Web page called ``Currently
Under Review,'' (3) click on the downward-pointing arrow in the
``Select Agency'' box below the ``Currently Under Review'' heading, (4)
select ``Federal Communications Commission'' from the list of agencies
presented in the ``Select Agency'' box, (5) click the ``Submit'' button
to the right of the ``Select Agency'' box, (6) when the list of FCC
ICRs currently under review appears, look for the Title of this ICR and
then click on the ICR Reference Number. A copy of the FCC submission to
OMB will be displayed.
Pursuant to 47 CFR 1.1200 et. seq., this matter shall be treated as
a ``permit-but-disclose'' proceeding in accordance with the
Commission's ex parte rules. Persons making oral ex parte presentations
are reminded that memoranda summarizing the presentations must contain
summaries of the substances of the presentations and not merely a
listing of the subjects discussed. More than a one or two sentence
description of the views and arguments presented is generally required.
Other rules pertaining to oral and written ex parte presentations in
permit-but-disclose proceedings are set forth in 47 CFR 1.1206 (b).
Initial Paperwork Reduction Act of 1995 Analysis
The Commission, as part of its continuing effort to reduce
paperwork burdens, invites the general public and OMB to comment on the
proposed information collection requirements contained in this
document, as required by the PRA. Public and agency comments are due
June 3, 2011. Comments should address: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the Commission, including whether the information
shall have practical utility; (b) the accuracy of the Commission's
burden estimates; (c) ways to enhance the quality, utility, and clarity
of the information collected; (d) ways to minimize the burden of the
collection of information on the respondents, including the use of
automated collection techniques or other forms of information
technology; and (e) ways to further reduce the information collection
burden on small business concerns with fewer than 25 employees. In
addition, pursuant to the Small Business Paperwork Relief Act of 2002,
Public Law 107-198, see 44 U.S.C. 3506 (c)(4), the Commission seeks
specific comment on how it may ``further reduce the information
collection burden for small business concerns with fewer than 25
employees.''
OMB Control Number: 3060-0855.
Title: Telecommunications Reporting Worksheets and Related
Collections.
Form No.: FCC Forms 499-A and 499-Q.
Type of Review: Revision of a currently approved collection.
Respondents: Businesses or other for-profit entities; Not-for-
profit institutions.
Number of Respondents and Responses: 8,183 respondents and 46,957
responses.
Estimated Time per Response: .25 hours to 25 hours.
Frequency of Response: Annual, on-occasion and quarterly reporting
requirement; Recordkeeping requirement; Third party disclosure
requirement.
Obligation to Respond: Mandatory. Statutory authority for this
information collection is contained in sections 151, 154(i), 154(j),
155, 157, 201, 205, 214, 225, 254, 303(r), 715 and 719 of the Act, 47
U.S.C. 151, 154(i), 154(j), 155, 157, 201, 205, 214, 225, 254, 303(r),
616, and 620.
Total Annual Burden: 313,881 hours.
Total Annual Costs: None.
Nature and Extent of Confidentiality: The Commission will allow
respondents to certify that data contained in their submissions is
privileged or confidential commercial or financial information and that
disclosure of such information would likely cause substantial harm to
the competitive position of the entity filing the FCC worksheets. If
the Commission receives a request for or proposes to disclose the
information, the respondent would be required to make the full showing
pursuant to the Commission's rules for withholding from public
inspection information submitted to the Commission.
Privacy Act Impact Assessment: No impact(s).
Needs and Uses: In document FCC 11-38, the Commission proposes
rules to require contributions to the Telecommunications Relay Service
Fund (TRS Fund) by non-interconnected Voice over Internet Protocol
(VoIP) service providers with interstate end-user revenues. In section
103(b) of the CVAA, Congress added a new section 715 to the
Communications Act of 1934, as amended (the Act), which directs the
Commission, within one year after the date of enactment of the CVAA, to
require each interconnected VoIP service provider and each provider of
non-interconnected VoIP service to participate in and contribute to the
TRS Fund established in Sec. 64.604(c)(5)(iii) of the Commission's
rules, as in effect on the date of enactment of such Act, in a manner,
to be prescribed by the Commission by regulation, that is consistent
with and comparable to the obligations of other contributors to the TRS
Fund. In 2007, the Commission added interconnected VoIP service
providers to the providers of interstate and international
telecommunications services that contribute to the TRS Fund. See VoIP
TRS Order, published at 72 FR 43546, August 6, 2007.
The NPRM proposes to extend these obligations to non-interconnected
VoIP service providers. This would require them to register using
blocks 1, 2, and 6 of the FCC Form 499-A, and to annually file the
completed form with the Commission. The NPRM makes other proposals
regarding the TRS Fund rules that do not contain any paperwork
requirements.
Synopsis
1. In document FCC 11-38, the Commission proposes rules to
[[Page 18492]]
implement section 103(b) of the CVAA, Public Law 111-260. The CVAA
added a new section 715 to the Act which requires each interconnected
VoIP service provider and each provider of non-interconnected VoIP
service to participate in and contribute to the TRS Fund. Section 715
of the Act also requires the Commission to adopt regulations to provide
for obligations of such providers that are consistent with and
comparable to the obligations of other contributors to the TRS Fund.
Currently, providers of interstate and international telecommunications
services and interconnected VoIP service contribute to the TRS Fund but
non-interconnected VoIP providers do not. In document FCC 11-38, the
Commission proposes: to conform the definition of ``interconnected VoIP
service with the definition in the CVAA and to define ``non-
interconnected VoIP service''; amend the Commission's rules to
specifically require interconnected and non-interconnected VoIP service
providers to contribute to the TRS Fund in a manner that is consistent
with and comparable to the obligations of other contributors to the
Fund; amend the Commission's rules to apply the $25 per year minimum
contribution requirement only to contributors who have subject
revenues; and make other editorial changes to the Commission's Rules
deemed appropriate and necessary. Document FCC 11-38 also seeks comment
on issues relating to the provision of free services, administrative
costs of providers, possible zero and de minimis contributions,
registration requirements, the completion and submission of
Telecommunications Reporting Worksheets (FCC Form 499-A), adopting an
interim safe harbor percentage for calculating interstate end-user
revenues, reporting billed or collected revenues, and the
implementation deadline.
Background
Interconnected VoIP Services
2. In 2007, the Commission extended section 225's TRS requirements
to interconnected VoIP service providers, including that such providers
must contribute to the TRS Fund. Since 2006, interconnected VoIP
service providers have been required to report their annual interstate
end-user telecommunications revenue information on FCC Form 499-A for
the purpose of the Universal Service Fund (USF) contribution
requirements.
3. Providers of ``non-interconnected VoIP service'' have not been
required to contribute to the TRS Fund and have not been required to
register or report revenues through the annual filing of FCC Form 499-A
for any purpose. Examples of VoIP services that are not within the
Commission's definition of ``interconnected VoIP'' include one-way VoIP
services (i.e., services that enable users to terminate calls to the
Public Switched Telephone Network (PSTN), but do not permit users to
receive calls that originate on the PSTN, or enable users to receive
calls from the PSTN, but do not permit the user to make calls
terminating to the PSTN) and IP-based voice services that do not
require a broadband connection.
Discussion
4. The CVAA defines ``non-interconnected VoIP'' service as a
service that ``enables real-time voice communications that originate
from or terminate to the user's location using Internet protocol or any
successor protocol; and requires Internet protocol compatible customer
premises equipment; and does not include any service that is an
interconnected VoIP service''.
5. Section 9.3 of the Commission's rules defines ``interconnected
VoIP service'' as a service that enables real-time, two-way voice
communications; requires a broadband connection from the user's
location; requires Internet protocol-compatible customer premises
equipment (``CPE''); and permits users generally to receive calls that
originate on the PSTN and to terminate calls to the PSTN. Section 101
of the CVAA requires the Commission to define ``interconnected VoIP
service'' as that term is defined under Sec. 9.3 of the Commission's
rules, ``as such section may be amended from time to time.'' Document
FCC 11-38 proposes to amend the TRS rules to remove the actual text of
the definition, and instead codify the following language provided in
the CVAA: ``The term `interconnected VoIP service' has the meaning
given such term under Sec. 9.3 of title 47, Code of Federal
Regulations, as such section may be amended from time to time.'' It
seeks comment on this proposal.
Participation in and Contribution to the TRS Fund
6. Carriers and interconnected VoIP service providers are currently
required to contribute the TRS Fund and, since 2007, interconnected
VoIP service providers have been reporting revenues for this purpose on
FCC Form 499-A. The NPRM proposes to continue using that form for
interconnected VoIP service and to extend that requirement to non-
interconnected VoIP service providers. It seeks comment on this
proposal.
7. The current FCC Form 499-A and instructions are not designed to
collect revenue or other information from providers of ``non-
interconnected VoIP services.'' The NPRM proposes that the Wireline
Competition Bureau, in consultation with the Commission's Consumer and
Governmental Affairs Bureau, make any revisions to the FCC Form 499-A
or its instructions that may be necessary to effectuate the
requirements of section 715 of the Act. It seeks comment on this
proposal.
8. Revenue Base. Currently, contributions to the TRS Fund are
assessed based on ``interstate end-user telecommunications revenues.''
The NPRM proposes to require non-interconnected VoIP service providers
to report their interstate end-user revenues as ``telecommunications
revenues'' on the FCC Form 499-A, for the limited purpose of
determining required TRS Fund contributions, and to contribute to the
TRS Fund. Requiring providers of non-interconnected VoIP services to
report interstate end-user revenues as ``telecommunications revenues''
would be consistent with how interconnected VoIP providers have been
reporting assessable revenues on the FCC Form 499-A.
9. Because some VoIP service providers offer some or all of their
services free to the public, the NPRM asks for comment on how the
Commission can ensure their participation and contributions are
consistent with and comparable to the obligations of other contributors
to the TRS Fund. For example, it asks whether it would be appropriate
to assess contributions from providers of free VoIP services based on
revenues from sources other than the ``interstate end-user revenues of
such services'' such as revenues from advertisers, donors, or other
revenue sources. The NPRM also seeks input on whether and how to
account for end-user revenues associated with VoIP services when those
services are provided as part of or in combination with other services
such as Internet-based customer services or video games that generate
revenue, or can the revenues associated with the VoIP service be
disaggregated from the revenue, if any, associated with the non-VoIP
service. The NPRM seeks comment on these issues.
10. Administrative Costs to the Provider. The Senate Report to the
CVAA permits the Commission to ``consider administrative costs to the
provider when calculating contributions'' and to ``determine that an
[[Page 18493]]
obligation for any one provider could be zero or a de minimis amount.''
The NPRM seeks comment on the types of ``administrative costs to the
provider'' that could be reported and how these may be considered when
calculating contributions. It also seeks comment on how
``administrative costs to the provider'' might be considered when
calculating contributions for a TRS Fund contributor that provides free
services and therefore reports no subject revenues. Additionally, if
administrative costs of interconnected or non-interconnected VoIP
service providers are taken into consideration when calculating
contributions, the NPRM seeks comment on the extent to which they
should be considered any differently than the administrative costs of
carriers or others required to contribute to the TRS Fund under the
Commission's rules.
11. Minimum Contribution Requirement. Currently, carriers and
interconnected VoIP service providers are required to file with USAC,
by April 1st of each year, a completed FCC Form 499-A, which is used in
part to calculate contributions to the TRS Fund. Filers are instructed
to enter ``0'' on any line for which the filer had no revenues for the
year. The NPRM seeks comment on whether a service that is offered
wholly for free to the public would result in a filer reporting no end-
user revenues for such service for the year.
12. The Commission has previously held that the $25 minimum TRS
Fund contribution requirement applies to all telecommunications
carriers that have end-user revenues. The NPRM tentatively concludes
that VoIP service providers that have no subject revenue for the
respective reporting year should not be subject to this minimum
contribution amount and seeks comment on this tentative conclusion.
Alternatively, the NPRM seeks comment on whether VoIP service providers
that report no subject revenue for the reporting year should be
assessed a de minimis contribution amount.
13. Conforming Amendments to Rules. The NPRM also proposes making
conforming amendments to the Commission's rules. The NPRM proposes, and
seeks comment on, replacing the terms ``carrier,'' ``carriers,'' and
``service providers'' in Sec. 64.604(c)(5)(iii)(B) of the Commission's
rules with the term ``contributor(s)'' and replacing ``interstate end-
user telecommunications revenues'' in Sec. 64.604(c)(5)(iii)(B) of the
Commission's rules and ``interstate end-user revenues of such
services'' in Sec. 64.604(c)(5)(iii)(B) of the Commission's rules with
the phrase ``revenues subject to contributions.''
14. Meaning of ``Participate In.'' Section 715 of the Act requires
each interconnected VoIP service provider and each provider of non-
interconnected VoIP service to ``participate in and contribute to the
[TRS] Fund.'' The NPRM tentatively concludes that the term
``participate in'' includes the requirement for contributors to
complete and submit a Telecommunications Reporting Worksheet (FCC Form
499-A) annually and seeks comment on this conclusion and the meaning of
the term ``participate in'' in this context.
15. Contributor Registration. The process of completing and
submitting the FCC Form 499-A includes a registration process of the
filing entity. All current TRS Fund contributors have completed this
registration process. The NPRM tentatively concludes that requiring all
providers of non-interconnected VoIP services to similarly register
with the Commission and designate a District of Columbia agent for
service of process using the FCC Form 499-A in accordance with its
instructions will facilitate the Commission's enforcement of TRS Fund
contribution obligations and is consistent with the congressional
mandate for consistent and comparable obligations. The NPRM proposes to
amend the registration requirements in Sec. 64.1195 of the
Commission's rules to include non-interconnected VoIP service providers
or to adapt those rules for non-interconnected VoIP service providers
under the Commission's TRS rules. Finally, the NPRM seeks comment on
whether Sec. 1.47(h) of the Commission's rules should be amended to
include providers of non-interconnected VoIP services among those
required to designate a District of Columbia agent for service of
process.
16. Safe Harbor. The NPRM seeks comment on whether, for purposes of
TRS Fund contribution calculations, a non-interconnected VoIP service
provider should be permitted to report its interstate end-user revenues
in FCC Form 499-A by using actual revenues, using a traffic study, or
using the interim safe harbor percentage (64.9 percent).
17. Billed or Collected Revenues. FCC Form 499-A filers are
instructed to provide information about interstate end-user
telecommunications revenues that are ``billed'' (or ``earned'') or
``uncollectible'' rather than revenues ``collected.'' The NPRM seeks
comment on whether calculations of TRS Fund contributions should be
based on each contributor's collected revenues rather than billed
revenues.
18. Implementation Deadline. Section 715 of the Act requires
``[w]ithin one year after the date of enactment of the CVAA'' each
interconnected VoIP service provider and each provider of non-
interconnected VoIP service to participate in and contribute to the TRS
Fund ``in a manner prescribed by the Commission by regulation.'' The
one-year deadline has already been met with regard to interconnected
VoIP service providers because they have been reporting revenues and
contributing to the TRS Fund annually since 2007. The NPRM proposes to
require non-interconnected VoIP service providers to register and
designate a District of Columbia agent for service of process by
September 30, 2011, using the FCC Form 499-A in accordance with its
instructions. It also proposes to require all non-interconnected VoIP
service providers to complete and submit FCC Form 499-A by April 1,
2012 to report interstate end-user revenues for such services for the
period from October 1 through December 31, 2011. Finally, it proposes
to begin assessing non-interconnected VoIP service providers for TRS
contributions based on revenues reported for the October through
December 2011 period for the 2012 through 2013 TRS Fund year (July 1,
2012 through June 30, 2013). The NPRM seeks comments on these
proposals.
Initial Regulatory Flexibility Analysis
19. The Regulatory Flexibility Act of 1980, as amended (RFA),
requires that an initial regulatory flexibility analysis be prepared
for notice-and-comment rulemaking proceedings, unless the agency
certifies that ``the rule will not, if promulgated, have a significant
economic impact on a substantial number of small entities.'' The
Commission has certified that the rules proposed in document FCC 11-38,
if promulgated, will not have a significant economic impact on a
substantial number of small entities.
20. The RFA generally defines the term ``small entity'' as having
the same meaning as the terms ``small business,'' ``small
organization,'' and ``small governmental jurisdiction.'' In addition,
the term ``small business'' has the same meaning as the term ``small
business concern'' under the Small Business Act. A ``small business
concern'' is one that: (1) Is independently owned and operated; (2) is
not dominant in its field of operation; and (3) satisfies any
additional criteria established by the Small Business Administration
(SBA).
21. In document FCC 11-38, the Commission seeks comment on its
[[Page 18494]]
proposal to implement section 103(b) of the CVAA, signed into law by
President Obama on October 8, 2010, that requires the Commission to
establish rules requiring each interconnected VoIP service provider and
each provider of non-interconnected VoIP service to participate in and
contribute to the interstate TRS Fund beginning within one year of the
enactment of the CVAA.
22. The TRS Fund compensates providers of TRS for their reasonable
costs of providing the service on an interstate basis. Document FCC 11-
38 seeks comment on, and proposes rules, to implement section 103(b) of
the CVAA and to require providers of non-interconnected VoIP service to
participate in and contribute to the TRS Fund in a manner that is
consistent with and comparable to other contributors. Document FCC 11-
38 also seeks comment on issues relating to the possible zero and de
minimis contributions in connection with the provision of free services
and the administrative costs of providers, registration requirements,
the completion and submission of Telecommunications Reporting
Worksheets (FCC Form 499-A), the adoption of an interim safe harbor
percentage for calculating interstate end-user revenues, and the
implementation deadline.
23. Specifically, document FCC 11-38 proposes: to require providers
of non-interconnected VoIP service to register with the Commission and
designate a District of Columbia agent for service of process for
purposes of contributing to the TRS Fund; to complete and file FCC Form
499-A annually; to permit providers of non-interconnected VoIP service
to determine interstate end-user revenues by using actual revenues, a
traffic study or to utilize a safe harbor; and to exempt service
providers with no end user revenues for the reporting year from the $25
minimum contribution requirement to the TRS Fund. It also seeks comment
on whether sources of revenue other than interstate end-user revenues
(e.g., advertising, donations) should be considered when a service
provider has no end-user revenues (i.e., when services are provided to
the public for free) and whether TRS Fund contributions should be based
on each contributor's collected revenues rather than billed revenues.
24. The Commission proposes to require that non-interconnected VoIP
service providers register and designate a District of Columbia agent
for service of process by filling out blocks 1, 2, and 6 of the FCC
Form 499-A and to annually file the completed Form with the Commission.
This is consistent with the Congressional mandate in section 103(b) of
the CVAA to require providers of non-interconnected VoIP service to
participate in and contribute to the TRS Fund in a manner that is
consistent with and comparable to the obligations of other contributors
to the Fund. Such reporting would be for the limited purpose of
determining required TRS Fund contributions and would not prejudge
issues concerning the appropriate regulatory classification of VoIP
services. It has previously been estimated that filling out the FCC
Form 499-A takes 13.5 hours (i.e., less than two work days of a single
full-time employee) annually. Thus, filling out the form does not have
a significant economic impact upon small entities.
25. Document FCC 11-38 seeks comment on how the Commission can best
ensure that the obligations of VoIP service providers that offer some
or all of their interstate services free to the public are consistent
with and comparable to the obligations of other contributors to the TRS
Fund. Section 225(d)(3)(B) of the Act requires the Commission to adopt
regulations that costs caused by interstate telecommunications relay
service be recovered from ``all subscribers'' for every interstate
service. Document FCC 11-38 seeks comment on whether it would be
necessary or appropriate to assess contributions from providers of free
VoIP services based on revenues from sources other than the
``interstate end-user revenues of such services,'' such as advertising
and donor contributions, or whether TRS Fund contributions of VoIP
providers should be based solely on interstate end-user revenues, even
if that results in a zero contribution. Because the typical
contribution historically has been slightly less than 1% of revenues
annually, this will not have a significant economic impact upon small
entities.
26. Additionally, the TRS rules currently impose a minimum $25
contribution on all entities, regardless of their reported revenues.
Document FCC 11-38 proposes that if the Commission determines that
contributions to the TRS Fund are to be based solely on interstate end-
user revenues, VoIP providers and other carriers subject to TRS Fund
contribution requirements with a zero contribution calculation (i.e.,
they either did not charge for end-user service or generated some end-
user revenue but it was offset by administrative costs that cancelled
out the revenue) not be subject to the minimum $25 contribution. If
this proposal is not adopted, alternatively, document FCC 11-38 seeks
comment on whether a VoIP service provider that reports no revenue for
the reporting year should be assessed a ``de minimis'' contribution
amount. Even if the Commission applies the minimum $25 annual
contribution to the TRS Fund to providers with a zero contribution
calculation, it would not constitute a significant economic impact upon
small entities.
27. The Commission has previously recognized that some
interconnected VoIP service providers may have difficulty complying
with the end-user revenue reporting requirements because they do not
have the ability to identify whether calls are interstate. As a result,
the Commission established a safe harbor which estimated the percentage
of interconnected VoIP service revenues attributable to interstate
calls to be 64.9%. These VoIP service providers may report their
interstate end-user revenues on the FCC Form 499-A by using actual
revenues, a traffic study or the safe harbor. Document FCC 11-38 seeks
comment on whether the Commission should also apply the safe harbor to
non-interconnected VoIP service providers. Because the safe harbor is
used when it reduces TRS Fund contributions, application of it to non-
interconnected VoIP services will not have any significant negative
economic impact upon small entities.
28. Document FCC 11-38 also requests input on whether to modify the
FCC Form 499-A to ask filers to provide information on ``collected''
(i.e. earned) revenues rather than, as currently, on ``billed'' (i.e.,
potentially uncollectible) revenues. This would harmonize the basis for
TRS Fund contributions with those for the Universal Service Fund, which
bases contributions on ``collected'' revenues. Because it would relieve
providers of basing their contribution to the TRS Fund on billed
revenues, it would reduce TRS Fund contributions and therefore would
not have any significant negative economic impact upon small entities.
29. Finally, the CVAA requires that VoIP service providers begin
participating in, and contributing to, the TRS Fund within one year of
the date of the CVAA's enactment. This deadline has been met with
regard to interconnected VoIP service providers who have been
participating in the Fund since 2007. To meet the statutory deadline,
document FCC 11-38 proposes to require non-interconnected VoIP service
providers to register by September 30, 2011 by completing blocks 1, 2
and 6 of the FCC Form 499-A, and to complete and submit the Form by
April 1, 2012, reporting their end-user revenues for the period from
October 1 through December 31, 2011.
[[Page 18495]]
This uniform registration deadline is mandated by statute and will not
have a significant adverse economic impact upon small entities.
30. With regard to whether a substantial number of small entities
may be economically impacted by the requirements proposed in document
FCC 11-38, the Commission notes that a substantial number of small
entities will be likely be affected; however, for the reasons stated
above, the cumulative economic impact on such entities will be de
minimis. Most participating entities are likely to meet the definition
of a small entity as a ``small organization.'' VoIP service providers
are included in the census business category ``All Other
Telecommunications.'' This category comprises ``establishments
primarily engaged in providing specialized telecommunications services,
such as satellite tracking, communications telemetry, and radar station
operation. This industry also includes establishments primarily engaged
in providing satellite terminal stations and associated facilities
connected with one or more terrestrial systems and capable of
transmitting telecommunications to, and receiving telecommunications
from, satellite systems. Establishments providing Internet services or
VoIP services via client-supplied telecommunications connections are
also included in this industry.'' For this category, Census Bureau data
for 2007 show that there were a total of 2,383 firms that operated for
the entire year. Of this total, 2,347 firms had annual receipts of
under $25 million and 12 firms had annual receipts of $25 million to
$49,999,999. Consequently, the Commission estimates that the majority
of All Other Telecommunications firms are small entities that might be
affected by our action.
31. Historically, the contributions to the TRS Fund have totaled
slightly less than 1% of revenues. Moreover, many non-interconnected
VoIP service providers offer their services for free and, unless
revenue sources other than end-user interstate revenues are included,
will have no annual contribution or the de minimis $25 contribution,
depending on the outcome of this proceeding. Accordingly, the
Commission concludes that a zero or $25 contribution is a de minimis
amount.
32. Therefore, based on the foregoing analysis of all foreseeable
economic impacts, the Commission certifies that the proposals in
document FCC 11-38, if adopted, will not have a significant economic
impact on a substantial number of small entities.
33. The Commission will send a copy of the document FCC 11-38,
including a copy of this Initial Regulatory Flexibility Certification,
to the Chief Counsel for Advocacy of the SBA.
Ordering Clauses
Pursuant to the authority contained in sections 1, 4(i), 4(j), 225,
and 715 of the Communications Act of 1934, as amended, 47 U.S.C. 151,
154(i), 154(j), 225, and 616, document FCC 11-38 IS ADOPTED. The
Commission's Consumer and Governmental Affairs Bureau, Reference
Information Center, SHALL SEND a copy of document FCC 11-38, including
the Initial Regulatory Flexibility Certification, to the Chief Counsel
for Advocacy of the Small Business Administration.
List of Subjects
47 CFR Part 1
Communications common carriers, Reporting and recordkeeping
requirements, Telecommunications.
47 CFR Part 64
Reporting and recordkeeping requirements, Telecommunications,
Telephone.
Federal Communications Commission.
Bulah Wheeler,
Deputy Manager.
Proposed Rules
For the reasons discussed in the preamble, the Federal
Communications Commission proposes to amend 47 CFR parts 1 and 64 as
follows:
PART 1--PRACTICE AND PROCEDURE
1. The authority citation for part 1 continues to read as follows:
Authority: 15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i), 154(j),
155, 157, 225, 303(r), and 309.
2. In Sec. 1.47, revise paragraph (h) to read as follows:
Sec. 1.47 Service of documents and proof of service.
* * * * *
(h) Every common carrier and interconnected VoIP provider, as
defined in Sec. 54.5 of this chapter, and non-interconnected VoIP
provider, as defined in Sec. 64.601(a)(15) of this chapter, that is
subject to the Communications Act of 1934, as amended, shall designate
an agent in the District of Columbia, and may designate additional
agents if it so chooses, upon whom service of all notices, process,
orders, decisions, and requirements of the Commission may be made for
and on behalf of such carrier, interconnected VoIP provider, or non-
interconnected VoIP provider in any proceeding before the Commission.
Such designation shall include, for the carrier, interconnected VoIP
provider, or non-interconnected VoIP provider and its designated
agents, a name, business address, telephone or voicemail number,
facsimile number, and, if available, Internet e-mail address. Such
carrier, interconnected VoIP provider, or non-interconnected VoIP
provider shall additionally list any other names by which it is known
or under which it does business, and, if the carrier, interconnected
VoIP provider, or non-interconnected VoIP provider is an affiliated
company, the parent, holding, or management company. Within thirty (30)
days of the commencement of provision of service, such carrier,
interconnected VoIP provider, or non-interconnected VoIP provider shall
file such information with the Chief of the Enforcement Bureau's Market
Disputes Resolution Division. Such carriers, interconnected VoIP
providers, and non-interconnected VoIP providers may file a hard copy
of the relevant portion of the Telecommunications Reporting Worksheet,
as delineated by the Commission in the Federal Register, to satisfy
this requirement. Each Telecommunications Reporting Worksheet filed
annually by a common carrier, interconnected VoIP provider, or non-
interconnected VoIP provider must contain a name, business address,
telephone or voicemail number, facsimile number, and, if available,
Internet e-mail address for its designated agents, regardless of
whether such information has been revised since the previous filing.
Carriers, interconnected VoIP providers, and non-interconnected VoIP
providers must notify the Commission within one week of any changes in
their designation information by filing revised portions of the
Telecommunications Reporting Worksheet with the Chief of the
Enforcement Bureau's Market Disputes Resolution Division. A paper copy
of this designation list shall be maintained in the Office of the
Secretary of the Commission. Service of any notice, process, orders,
decisions or requirements of the Commission may be made upon such
carrier, interconnected VoIP provider, or non-interconnected VoIP
provider by leaving a copy thereof with such designated agent at his
office or usual place of residence. If such carrier, interconnected
VoIP provider, or non-interconnected VoIP provider fails to designate
such an agent, service of any notice or other process in any proceeding
before the Commission, or of
[[Page 18496]]
any order, decision, or requirement of the Commission, may be made by
posting such notice, process, order, requirement, or decision in the
Office of the Secretary of the Commission.
PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS
3. The authority citation for part 64 is revised to read as
follows:
Authority: 47 U.S.C. 154, 254(k); secs. 404(b)(2(B), (c), Pub.
L. 104-104, 110 Stat. 56. Interpret or apply 47 U.S.C, 201, 218,
222, 225, 226, 228, 254(k), 616, and 620, unless otherwise noted.
Subpart F--Telecommunications Relay Services and Related Customer
Premises Equipment for Persons With Disabilities
4. The authority citation for subpart F is revised to read as
follows:
Authority: 47 U.S.C. 151-154; 225, 255, 303(r), 616, and 620.
5. In Sec. 64.601, revise paragraph (a)(10), redesignate
paragraphs (a)(15) through (a)(27) as paragraphs (a)(16) through
(a)(28), and by adding new paragraph (a)(15) to read as follows:
Sec. 64.601 Definitions and provisions of general applicability.
(a) * * *
(10) Interconnected VoIP service. The term ``interconnected VoIP
service'' has the meaning given such term under Sec. 9.3 of title 47,
Code of Federal Regulations, as such section may be amended from time
to time.
* * * * *
(15) Non-interconnected VoIP service. The term ``non-interconnected
VoIP service''--
(i) means a service that--
(A) enables real-time voice communications that originate from or
terminate to the user's location using Internet protocol or any
successor protocol; and
(B) requires Internet protocol compatible customer premises
equipment; and
(ii) does not include any service that is an interconnected VoIP
service.
* * * * *
6. In Sec. 64.604, revise paragraphs (c)(5)(iii)(A) and
(c)(5)(iii)(B), remove paragraph (c)(5)(iii)(D), redesignate paragraph
(c)(5)(iii)(C) as paragraph (c)(5)(iii)(D), and add new paragraph
(c)(5)(iii)(C) to read as follows:
Sec. 64.604 Mandatory minimum standards.
* * * * *
(c) * * *
(5) * * *
(iii) * * *
(A) Contributions. Every carrier providing interstate
telecommunications services (including interconnected VoIP service
providers pursuant to Sec. 64.601(b)) and every provider of non-
interconnected VoIP service shall contribute to the TRS Fund on the
basis of interstate end-user telecommunications revenues as described
herein. Contributions shall be made by all carriers who provide
interstate services, including, but not limited to, cellular telephone
and paging, mobile radio, operator services, personal communications
service (PCS), access (including subscriber line charges), alternative
access and special access, packet-switched, WATS, 800, 900, message
telephone service (MTS), private line, telex, telegraph, video,
satellite, intraLATA, international and resale services. For purposes
of this paragraph, telecommunications revenues include revenues from
non-interconnected VoIP services.
(B) Contribution computations. Contributors' contributions to the
TRS fund shall be the product of their subject revenues for the prior
calendar year and a contribution factor determined annually by the
Commission. The contribution factor shall be based on the ratio between
expected TRS Fund expenses to the contributors' revenues subject to
contribution. In the event that contributions exceed TRS payments and
administrative costs, the contribution factor for the following year
will be adjusted by an appropriate amount, taking into consideration
projected cost and usage changes. In the event that contributions are
inadequate, the fund administrator may request authority from the
Commission to borrow funds commercially, with such debt secured by
future years' contributions. Each subject contributor that has revenues
subject to contribution must contribute at least $25 per year.
Contributors whose annual contributions total less than $1,200 must pay
the entire contribution at the beginning of the contribution period.
Contributors whose contributions total $1,200 or more may divide their
contributions into equal monthly payments. Contributors shall complete
and submit, and contributions shall be based on, a ``Telecommunications
Reporting Worksheet'' (as published by the Commission in the Federal
Register). The worksheet shall be certified to by an officer of the
contributor, and subject to verification by the Commission or the
administrator at the discretion of the Commission. Contributors'
statements in the worksheet shall be subject to the provisions of
section 220 of the Communications Act of 1934, as amended. The fund
administrator may bill contributors a separate assessment for
reasonable administrative expenses and interest resulting from improper
filing or overdue contributions. The Chief of the Consumer and
Governmental Affairs Bureau may waive, reduce, modify or eliminate
contributor reporting requirements that prove unnecessary and require
additional reporting requirements that the Bureau deems necessary to
the sound and efficient administration of the TRS Fund.
(C) Registration Requirements for Providers of Non-Interconnected
VoIP Service.
(1). Applicability. A non-interconnected VoIP service provider that
will provide interstate service shall file the registration information
described in paragraph (c)(5)(iii)(C)(2) of this section in accordance
with the procedures described in paragraphs (c)(5)(iii)(C)(3) and
(c)(5)(iii)(C)(4) of this section. Any non-interconnected VoIP service
provider already providing interstate service on the effective date of
these rules shall submit the relevant portion of its FCC Form 499-A in
accordance with paragraphs (c)(5)(iii)(C)(2) and (c)(5)(iii)(C)(3) of
this section.
(2). Information required for purposes of TRS Fund contributions. A
non-interconnected VoIP service provider that is subject to the
registration requirement pursuant to paragraph (c)(5)(iii)(C)(1) of
this section shall provide the following information:
(i) The provider's business name(s) and primary address;
(ii) The names and business addresses of the provider's chief
executive officer, chairman, and president, or, in the event that a
provider does not have such executives, three similarly senior-level
officials of the provider;
(iii) The provider's regulatory contact and/or designated agent;
(iv) All names that the provider has used in the past; and
(v) The state(s) in which the provider provides such service.
(3). Submission of registration. A provider that is subject to the
registration requirement pursuant to paragraph (c)(5)(iii)(C)(1) of
this section shall submit the information described in paragraph
(c)(5)(iii)(C)(2) of this section in accordance with the Instructions
to FCC Form 499-A. FCC Form 499-A must be submitted under oath and
penalty of perjury.
(4). Changes in information. A provider must notify the Commission
of any changes to the information provided
[[Page 18497]]
pursuant to paragraph (c)(5)(iii)(C)(2) of this section within no more
than one week of the change. Providers may satisfy this requirement by
filing the relevant portion of FCC Form 499-A in accordance with the
Instructions to such form.
* * * * *
[FR Doc. 2011-7798 Filed 4-1-11; 8:45 am]
BILLING CODE 6712-01-P
