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Advancing The Cause of Competition in the Telecommunications Industry
FCC REGULATORY FEES DUE NO LATER THAN SEPTEMBER 19, 2006
The Federal Communications Commission has published a notice in the
Federal Register announcing the Fiscal Year 2006 Regulatory Payment
window is opening to accept annual regulatory fee payments.
Regulatory fee payments will be accepted from September 6, 2006
through September 19, 2006. Any payments received after 11:59
p.m. September 19, 2006 will be assessed a 25% late fee.
If your company is registered with the FCC as an interstate carrier
(i.e., Form 499 registration) you should have already received an
invoice for Regulatory Fees. The invoiced amount reflects application
of a 0.00264 fee factor to the combined interstate and international
retail revenue reported in your company's FCC Form 499-A.
If you have not received your Regulatory Fee invoice, but generated
retail telecommunications revenue during 2005, do not ignore the legal
duty to pay Regulatory Fees. The FCC reminds regulated entities of
the consequences of delinquent and non-payment:
A LATE PAYMENT PENALTY OF 25 PERCENT OF THE AMOUNT OF THE REQUIRED
REGULATORY FEE WILL BE ASSESSED ON THE FIRST DAY FOLLOWING THE
DEADLINE DATE FOR FILING OF THESE FEES. REGULATORY FEE PAYMENT MUST
BE RECEIVED AND STAMPED AT THE LOCKBOX BANK BY THE LAST DAY OF THE
REGULATORY FEE FILING WINDOW, AND NOT MERELY POSTMARKED BY THE LAST
DAY OF THE WINDOW.
Failure to pay regulatory fees and/or any late penalty will subject
regulatees to sanctions, including the Commission's Red Light Rule
(see 47 C.F.R. 1.1910) and the provisions set forth in the Debt
Collection Improvement Act of 1996 (DCIA). The FCC also assesses
administrative processing charges on delinquent debts to recover
additional costs incurred in processing and handling the related debt
pursuant to the DCIA and 71.1940(d) of the Commission's Rules. These
administrative processing charges will be assessed on any delinquent
regulatory fee, in addition to the 25 percent late charge penalty.
Partial underpayments of regulatory fees are treated in the following
manner. The licensee will be given credit for the amount paid, but if
it is later determined that the fee paid is incorrect or not timely
paid, the 25 percent late charge penalty will be assessed on the
portion that is not paid in a timely manner.
NEW PREPAID CALLING CARD REGULATORY REGIME EFFECTIVE OCTOBER 31, 2006
On August 2, 2006, the FCC published notice in the Federal Register
announcing that it will treat prepaid calling card service providers
as telecommunications service providers and, as such, require them to
pay interstate access charges and contribute to the federal Universal
Service Fund. The new prepaid calling card regulatory regime will
become effective on October 31, 2006.
Under the new rules, prepaid calling card providers will be required
to provide their transport providers with 'PIU Certifications' on a
quarterly basis. They must also file quarterly 'Compliance
Certifications' with the FCC's Enforcement Bureau. Based on the
effective date of the rules, the first certifications will be due no
later than December 31, 2006. Thereafter, PIU Certifications are due
by the 45th day after the close of the prior quarter and the
Compliance Certification is due by the last day of the quarter in
which the PIU Certification was provided. For example, in 2007, the
first full year under the new rules, prepaid carriers will have the
following filing schedule:
Q1: PIU Certification: Due Feb. 15, 2007; Compliance Certification
Due March 30, 2007
Q2: PIU Certification: Due May 15, 2007; Compliance Certification
Due June 30, 2007
Q3: PIU Certification: Due Aug. 15, 2007; Compliance Certification
Due Aug. 30, 2007
Q4: PIU Certification: Due Nov. 15, 2007; Compliance Certification
Due Nov. 30, 2007
Should you require assistance complying with these FCC Rules, please
contact your regulatory attorney. If you are not represented by
counsel, please feel free to contact The Helein Law Group at
703-714-1313 or by e-mail: jsm@thlglaw.com.
The Front Lines is a free publication of The Helein Law Group, P.C.,
providing clients and interested parties with valuable information,
news, and updates regarding regulatory and legal developments
primarily impacting companies engaged in the competitive
telecommunications industry.
The Front Lines does not purport to offer legal advice nor does it
establish a lawyer-client relationship with the reader. If you have
questions about a particular article, general concerns, or wish to
seek legal counsel regarding a specific regulatory or legal matter
affecting your company, please contact our firm at 703-714-1313 or
visit our website:
http://www.thlglaw.com/ www.THLGlaw.com
The Helein Law Group, P.C.
8180 Greensboro Drive, Suite 775
McLean, Virginia 22102
Jonathan Marashlian (jsm@thlglaw.com)