On February 3, 2015, the FCC released a Policy Statement adopting a new method for fining telecommunications service providers who fail to timely contribute to many Federal programs.  Under the new method, the FCC will set the base forfeiture amount at triple the amount a company owes.     

This new policy will apply to unpaid regulatory fees and to debts owed to the Universal Service Fund (“USF”), the Telecommunications Relay Service (“TRS”) Fund, and the cost recovery mechanisms for local number portability (“LNP”) and the North American Numbering Plan (“NANP”).  Telecommunications service providers, including many VoIP providers, are required to pay FCC regulatory fees, contribute to the USF, TRS, LNP, and NANP programs, and file Forms 499 to report the data used to assess their payment obligations under these programs. 

This new policy is a step up from the FCC’s current forfeiture methodology. Now, an entity that fails to timely pay regulatory fees or fails to timely contribute to the USF, TRS, LNP, or NANP programs will face a base forfeiture of three times the amount of the delinquency. 

This is particularly significant since the FCC’s forfeiture rules allow it to increase or decrease the base forfeiture amount before proposing the forfeiture to the violator.

The Policy Statement serves as a reminder of the importance of timely paying regulatory fees and contributing to the USF, TRS, LNP, and NANP programs.  If you have questions about filing Forms 499, contributing to these programs, or paying regulatory fees, please contact Jake Baldwin at (312) 372-3930 or jbaldwin@cinnamonmueller.com or Bruce Beard at (314) 394-1535 or bbeard@cinnamonmueller.com.

FCC Releases Enforcement Advisory for CPNI Officer Certification Due March 2, 2015

On February 9, 2015, the FCC released an Enforcement Advisory reminding telecommunications carriers and interconnected VoIP providers that their annual reports certifying compliance with the FCC’s Customer Proprietary Network Information (“CPNI”) rules are due on or before March 2, 2015.  Note that the advisory incorrectly lists March 1, 2015 as the filing deadline.  Under FCC rules, when a filing deadline falls on a weekend or holiday, the filing is due the next business day.  In this case, that’s Monday, March 2, 2015. 

The FCC’s customer proprietary network information (“CPNI”) rules require that an officer of a telecommunications carrier or interconnected VoIP provider file an annual certificate with the FCC stating that the officer has personal knowledge that the provider has established operating procedures adequate to ensure compliance with the CPNI rules.  The carrier must also provide a statement explaining how its operating procedures ensure that it is in compliance with the CPNI rules.  The annual certificate for 2014 must be filed on or before March 2, 2015.

The provider must also include, if applicable, an explanation of any actions taken against data brokers and a summary of all customer complaints concerning the unauthorized release of CPNI received in the past year.  The officer’s certificate, as well as the information noted above, must be filed in EB Docket No. 06-36.

The Enforcement Advisory also includes further guidance regarding the filing of the officer’s certificate, including an acceptable sample form.  Use of the sample form is not mandatory provided all required information is included. 

In addition to the filing reminder, the Enforcement Advisory also highlighted the FCC’s Enforcement Bureau’s September 2014 Consent Decree with Verizon that settled accusations that the company had misused its customer’s personal information for marketing purposes.  The settlement required Verizon to make a $7.4 million payment to the U.S. Treasury. 

If you have any questions regarding CPNI or filing the officer’s certificate, please contact Bruce Beard at (314) 394-1535 or via email at bbeard@cinnamonmueller.com.

Form 477 Due March 2, 2015

            The next Form 477 is due March 2, 2015.  The FCC recently released a Public Notice reminding filers of the upcoming deadline. Telephone, broadband, and interconnected VoIP providers must report information about broadband connections and local telephone service as of December 31, 2014.

            Note:  Though the Public Notice lists March 1, 2015 as the filing deadline, March 1^st falls on a Sunday this year.  Accordingly, under FCC rules, Form 477 will be due the next business day – Monday, March 2, 2015. 

This is the second Form 477 filing requiring the use of the new filing interface on the FCC’s website.  Instructions for filers can be found here.  Filers can also review a brief summary of the Form 477 changes on the FCC’s website. 

If you have any questions about Form 477, please contact Scott Friedman at (312) 372-3930 or sfriedman@cinnamonmueller.com.

Copyright Forms and Fees Due by March 2, 2015

Cable operators must file with the U.S. Copyright Office their Statement of Accounts (Form SA1-2 or SA3) and pay any royalty fees due for the July 2014 – December 2014 accounting period by March 2, 2015. The following forms apply:

• SA1-2 Short Form. For use by cable systems with semiannual gross receipts of less than $527,600. 
• SA3 Long Form. For use by cable systems with semiannual gross receipts of $527,600 or more.

Copyright filings must be accompanied by a filing fee in addition to the royalty payment.  The filing fee is calculated based on the type of form filed:  

Operators must remit the royalty fee and filing fee in a single electronic payment.  If you have any questions about copyright forms or fees, please contact Heidi Schmid at (312) 372-3930 or hschmid@cinnamonmueller.com.