Continuing to implement the FCC’s rules to improve service to rural areas, the FCC announced that all “intermediate providers” (i.e., entities that carry, but do not originate, long distance traffic) must register with the agency by May 15, 2019. The registration requirement stems from rules adopted by the FCC last summer designed to increase

On March 15, 2019 the FCC adopted its Fourth Report and Order (“Order”) establishing rural call completion service quality standards for intermediate providers.  While the Order remains largely unchanged from the draft circulated prior to the FCC’s March Open meeting (see our prior post) for more details on the draft Order), the FCC made one significant change that should interest intermediate providers handling calls destined for termination outside of the United States. The adopted Order clarifies that the new rules do not apply to non-U.S. intermediate providers on calls terminating outside of the United States. As a result, the Order eases compliance requirements for the final U.S. intermediate provider in a call path destined for foreign termination.

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The FCC continues its efforts to improve rural call completion, teeing up a draft Fourth Report and Order (“Order”) that would adopt new service quality standards for intermediate providers (i.e. entities that carry, but do not originate or terminate calls) for consideration at its March 15, 2019 Open Meeting. The Order, which would further implement the Rural Call Quality and Reliability Act of 2017 (“RCC Act”), proposes intermediate provider service quality standards and related enforcement procedures, and sunsets existing call data recording and retention rules for covered providers. The Order also would deny two pending Petitions for Reconsideration of previous rural call completion orders. Although the proposed service quality standards would not take effect until the later of six months after the Order is released or 30 days after it is published in the Federal Register, intermediate providers will want to begin familiarizing themselves with the proposed new rules now in light of the significant potential enforcement penalties for noncompliance.

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Spectrum issues will once again take center stage at the FCC’s next open meeting scheduled for March 15, 2019. In a jam-packed agenda, the FCC plans to create a new category of experimental licenses for operations in spectrum above 95 GHz and potentially make more than 21 gigahertz available for unlicensed use in these so-called “spectrum horizons.” The agency also anticipates launching a rulemaking to permit broadband operations in a portion of the 900 MHz band that currently is used for two-way radio operations. In addition, the FCC expects to seek input on improving spectrum partitioning, disaggregation, and leasing arrangements. These spectrum proposals follow similar FCC actions designed to improve access to mid- and high-band frequencies, and could jump-start a new wave of innovation in next-generation, short-range technologies. Rounding out the major actions on the March agenda, the FCC plans to propose new wireless E911 location accuracy requirements and adopt service quality standards for intermediate service providers to improve rural call completion. If adopted, these proposals would impose significant obligations on carriers of all sizes and could potentially lead to serious fines in the event of noncompliance.

You will find more details on the significant March meeting items after the break:


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We now know that the Rural Call Completion rules the Federal Communications Commission adopted in late 2013, and modified in November 2014, have taken effect, with obligations commencing as soon as April 1, 2015.   The rules require certain originating long-distance providers to record, retain, and report information on delivery of long distance calls to rural local exchange carriers (“LECs”) individually and to nonrural LECs in the aggregate. The holdup on the rules taking effect was Office of Management and Budget review of the data collection requirements.
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Although the Federal Communications Commission’s Rural Call Completion rules have not yet become effective, the Enforcement Bureau recently concluded an investigation into the performance of Windstream in completing long-distance calls.  The carrier reached a settlement with the Commission obligating it to make a voluntary contribution to the Treasury of $2,500,000.  The Enforcement Bureau’s investigation, which commenced in November 2012, “ultimately focused” on the performance of the voice network owned and operated by PAETEC Holding Corporation prior to and after its 2011 acquisition by Windstream and potential violations of Sections 201(b) and 202(a) of the Communications Act, which proscribe practices of common carriers that are unjust or unreasonable or unjustly or unreasonably discriminatory.  In addition to the significant monetary component, the consent decree, adopted on Thursday, February 20, 2014, contains a three-year compliance plan commitment.
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On July 19th, the FCC Enforcement Bureau issued a an advisory to providers of long distance services reminding them that resolving rural call completion problems is a “top priority” of the Commission and of long distance carriers’ obligations to investigate and respond when served with an informal complaint by the FCC concerning rural call completion.