http://www.mossadams.com/industries/telecom/default.htm

March 26, 2006


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Edited by
Chad Duval, Sr. Manager
Moss Adams Stockton
209.955.6124




Moss Adams LLP

You can reach our telecom professionals at these Moss Adams locations:

Spokane

601 W. Riverside Ave.
Spokane, WA 99201
(800) 888-4065
Rick Betts, Partner
Clay Sturgis, Partner

Stockton

3121 W. March Lane
Stockton, CA 95219-2303
(209) 955-6100
Roger Barker, Partner
Bruce Nakamura, Partner


Intercarrier Compensation Proposal Reviewed

The Rural Alliance has been negotiating an intercarrier compensation proposal with other interested parties for the last 18 months and recently held a series of presentations on the status of that proposal. The so called "Group of 11", which includes representatives from all areas of the telecommunications industry, has developed a three (3) track plan for the future of intercarrier compensation. This is a compromise plan that attempts to take the interests of all parties into account. Chad Duval of Moss Adams attended one of the Rural Alliance's briefings on the plan last week. Because of a non-disclosure request from the Rural Alliance, Chad's notes from this briefing are only being made available to rural ILECs and their representatives.

Contact: Chad Duval Stockton Office 209.955.6124



Annual NECA Consultants Meeting

NECA held their Annual Consultants Meeting on February 28th and March 1st, 2006. The purpose of this meeting is to discuss issues that impact member companies, especially as they pertain to separations and the filing of the annual cost study. This year's meeting involved some interesting and lively discussion on some very important cost study issues, including: timeliness of submissions, deferred taxes, direct assignment of expenses, RTB stock, and much more. Chad Duval attended the meeting on behalf of Moss Adams. Again, because of disclosure issues, Chad's notes from the NECA Consultants Meeting are only being made available to rural ILECs and their representatives.

Contact: Chad Duval Stockton Office 209.955.6124



Industry News

  • AT&T to acquire BellSouth for $67B. Just 6 months after SBC closed the deal to acquire AT&T, and subsequently changing its name, AT&T has agreed to acquire another of the former RBOCs. Is "revestiture" a word?

  • The FCC is moving forward with its planned June auction of Advanced Wireless Services licenses in the 1710-1755 MHz and 2110-2155 MHz bands. This spectrum is considered ideal for providing wireless voice, video and data services. Licenses will be auctioned in 734 Cellular Market Areas, 352 Economic Areas and 36 Regional Economic Areas, giving rural carriers a reasonable opportunity to participate.

  • Remember to check your Red Light status frequently at https://svartifoss2.fcc.gov/redlight/login.cfm. Companies on the Red Light list are not eligible for payments from the federal government, including federal USF.


Industry Calendar

March 30
  • High Cost Support Mechanism Line Count (Q3) is due to NECA. Only for price cap carriers.
March 31
  • Interstate Access Support Line Count (Q4) is due to USAC. Only for price cap carriers.

  • FCC Form 492A – Rate of Return Final Report is due to the FCC. Only for price cap carriers.

  • International Circuit Data Reporting (Section 43.82) – Data on circuits between the U.S. & foreign points for the prior calendar year is due to the FCC.
April 1
  • ARMIS Reports due to the FCC.

  • Toll Provider Revenue Letter due to the FCC. Only for toll providers with $117+M in revenue, indexed to 2003.

  • FCC Form 499A – USF Contribution Worksheet is due to USAC and the FCC. Click here for an updated version of the form.
April 17
  • FCC Form 497 (Q1), Lifeline & Linkup Worksheet, is due to USAC to be compensated for subsidies provided in the 1st quarter of 2006.
May 1
  • FCC Form 499Q (Q1), USF Contribution Worksheet, is due to USAC and the FCC.

  • Geographic Rate Averaging Certification due to the FCC. Only for toll providers.

Contact: Lorrie Bernstein Stockton Office 209.955.6103



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