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A New Name
In the Loop better reflects what this newsletter is designed to do–keep you in the loop on important industry issues. We hope you enjoy this edition.
DSL Service Deregulated – NECA Pooling Preserved
On August 5, 2005, the FCC adopted an Order that will regulate wireline DSL services in the same fashion as cable modem service. As a Title I information service, facilities based DSL
providers no longer have to provide network access to competitors, although there is a 1-year grandfathering period for existing wholesale arrangements.
Of important note to rural ILECs is a carve out that allows them to continue providing DSL on a common carrier basis through the NECA tariff. One important item that is still to be determined is how the FCC will transition USF
contributions from DSL providers. This Order has not yet been issued, but is expected by the end of the month.
Click here for a further discussion of the potential impacts of this Order on rural ILECs.
Contact:
Chad Duval Stockton Office 209.955.6124
VoIP Providers Subject to CALEA Requirements
In a companion Order to the DSL Order discussed above, the FCC has determined that providers of facilities based broadband and interconnected VoIP services are subject to CALEA
requirements. The FCC determined that services that can essentially replace conventional telecommunications services, by allowing users to receive calls from and place calls to the public switched telephone network, must enable law
enforcement agencies to conduct wiretaps.
The FCC ordered that VoIP providers must fully comply with CALEA requirements within 18 months from the effective date of the Order. At the same time the FCC issued a Further Notice of Proposed Rule Making to determine whether certain
classes of facilities based broadband Internet access providers, including rural providers, should be exempt from CALEA.
Contact:
Chad Duval Stockton Office 209.955.6124
Rural Telephone Bank to be Dissolved
The Board of Directors of the Rural Telephone Bank voted August 4 to liquidate. It is expected that stock will begin to be redeemed during the second quarter of 2006. Now is the time to verify that your Class B and/or Class C stock
balances agree to the RTB records, and to analyze the tax impact of the liquidation. RTB stock dividends were not taxable as received, but when the cash is received upon liquidation, the tax may be significant. Take the time to plan now.
Contact:
Cheri Burnham Spokane Office 509.777.0122
Other Industry News & Notes
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FCC Form 477 – Local Telephone Competition and Broadband Reporting Form due to FCC by September 1st, containing data as of June 30th.
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FCC Form 492 – Rate of Return Report, corrections to annual filing only, due to FCC by September 30th. Only rate of return companies that do not participate in both the NECA Common Line and Traffic Sensitive Pools must submit. NECA files
on behalf of members of both pools.
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FCC Form 507Q2 – ICLS Line Counts as of June 30th, for ILECs with a CETC reporting lines in its study area, due to USAC by September 30th.
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Quarterly USF (High Cost Loop Support) Filing and Certification due to NECA by September 30th. Only for companies that choose to submit quarterly updates.
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LSS Forecast and Certification due to USAC by October 1st. NECA calculates the LSS Forecast on behalf of members of the Traffic Sensitive Pool and submits to carrier for review and certification. NECA submits forecast to USAC on behalf
of Traffic Sensitive Pool members.
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Universal Service Support Use Certification due to USAC and FCC by October 1st. State Commissions are required to certify that rural ILECs are using USF for the intended purposes to USAC and FCC, in states where the ILECs are regulated by
the State Commission. Most States have a certification process that is due well in advance of the October 1st USAC and FCC deadline. If the State Commission does not regulate rural ILECs, the ILEC must certify directly to USAC and
FCC.
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FCC Form 497 – Lifeline and Link Up Worksheet due to USAC by October 10th.
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The FCC has approved the merger of Sprint and Nextel. One of the conditions of the merger was that the combined entity spin-off Sprint's local wireline assets. Once the merger has been completed, the local wireline business will operate
as a separate entity. There has been no indication of potential access line sales.
Contact:
Lorrie Bernstein Stockton Office 209.955.6103
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