FCC Releases Order Waiving Enhanced Transparency Requirements for Small Providers

On March 2, 2017, the FCC released an Order waiving, for five years, the 2015 enhanced reporting requirements for broadband Internet access service (“BIAS”) providers with 250,000 or fewer broadband connections.  The Order applies retroactively to the date the enhanced reporting requirements became effective, January 17, 2017, and will be in effect until March 2, 2022.

Background.  In its 2015 Open Internet Order (”2015 Order), the FCC adopted certain enhancements to the transparency rule adopted in its 2010 Open Internet Order (“2010 Order”).  These enhancements imposed additional recordkeeping obligations on BIAS providers that required Office of Management and Budget (“OMB”) approval before they could go into effect.  On December 16, 2016, the FCC issued a Public Notice announcing OMB approval and a January 17, 2017 effective date for the enhancements. 

When the enhanced transparency requirements were initially adopted, the FCC had granted a temporary exemption from the enhancements for BIAS providers with 100,000 or fewer broadband connections.  This temporary exemption was extended once, before it lapsed by its own terms on December 15, 2016.  Because the FCC did not extend the temporary exemption, all BIAS providers were required to comply with the enhanced transparency rules beginning January 17, 2017.

New Relief.  The waiver increases the coverage threshold from 100,000 to 250,000 broadband connections and applies retroactively to January 17, 2017.  The waiver will end March 2, 2022.

Small BIAS Provider Transparency Obligations.  The waiver applies to BIAS providers who reported 250,000 or fewer broadband connections on their most recent Form 477 filing. 

Smaller BIAS providers subject to the waiver must ensure that they still meet their transparency obligations under the 2010 Order.  Under the transparency rule adopted in the 2010 Order and in effect since 2011, BIAS providers must publicly disclose accurate information regarding their network management practices, network performance and commercial terms sufficient to allow consumers to make informed choices and Internet edge (content, applications, services, device) providers to develop, market and maintain Internet offerings.  This information must be disclosed on a publicly available, easily accessible website and at the point of sale.

Prior Guidance.  The FCC has previously provided advisory guidance to BIAS providers on how they can meet their disclosure obligations under the Transparency Rule.  In particular, this includes the release of an Advisory Guidance from the Enforcement Bureau and Office of General Counsel in 2011, a Small Entity Compliance Guide in 2012, an Enforcement Advisory in 2014, and an Open Internet Small Entity Compliance Guide in 2016.  The FCC’s Chief Technologist and Enforcement Bureau issued an Advisory Guidance in 2016 for providers that are subject to the enhanced disclosure requirements.  While these releases are not binding on the FCC, they do offer authoritative guidance on acceptable disclosure practices.

Additionally, Cinnamon Mueller has addressed the transparency requirements in prior client updates and discussed issues ranging from FCC Actions against non-compliant operators (May 23, 2016 Update) to disclosures required pursuant to the 2010 and 2015 Orders (August 21, 2015 Update).

If you have any questions about the FCC’s Open Internet rules, the basic Transparency Rule and/or the enhanced transparency rules, please contact Barbara Esbin at (202) 872-6811 or besbin@cinnamonmueller.com, Bruce Beard at (314) 394-1535 or bbeard@cinnamonmueller.com, or Scott Friedman at (312) 372-3930 or sfriedman@cinnamonmueller.com.

FCC Reopens Form 477 Filing Interface

Form 477 Due by March 24, 2017

On March 7, 2017, the FCC released a Public Notice announcing that the Form 477 filing interface has been reopened and that the new deadline for filing Form 477 (reporting data as of December 31, 2016) is March 24, 2017. 

The interface closed on February 22, 2017 due to technical issues.  Filers who submitted their Form 477 filings prior to the closing of the site need not take any further action. In addition, filers who started the filing process prior to the closing of the site do not need to reupload any files or reenter any records.  These filers should see their previously uploaded data after logging into the interface.

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

FCC Releases Accessibility Filing Reminder – CVAA Compliance Certificate due April 1, 2017

On March 1, 2017, the FCC released a Public Notice reminding telecommunications carriers, interconnected VoIP and advanced communications services providers that they must file their annual accessibility compliance certificates (covering 2016) by April 1, 2017. 

Who must file: 

• Telecommunications carriers,
• Interconnected VoIP providers; and
• Advanced communications service providers (e.g., providers of email, text messaging, instant messaging, interoperable video conferencing services).   

What does the certification contain?  All covered providers must submit the annual certification through the FCC’s Recordkeeping Compliance Certification and Contact Registry certifying that the company has established operating procedures adequate to ensure compliance with the recordkeeping rules and that the records are being kept accordingly.  In addition, covered providers must designate and keep current:

• A contact person authorized to resolve accessibility-related complaints from consumers, and
• An agent to accept service of complaints filed with the FCC.

If you have any questions about operating procedures or filing certifications, please contact Bruce Beard at (314) 394-1535 or bbeard@cinnamonmueller.com.

FCC Form 499-A Due April 1, 2017

All providers of telecommunications, including resellers and those offering interconnected VoIP service, with very limited exceptions, must file their annual telecommunications revenue report (Form 499-A) on or before April 1, 2017.  This includes any entity that relies on the de minimis exception for contributions to the federal Universal Service Fund (“USF”).

Information reported in FCC Form 499-A is used to calculate the support contribution an entity must pay into the USF as well as the Telecommunications Relay Service (“TRS”), North America Numbering Plan (“NANP”), and Local Number Portability Administration (“LNPA”) funds.  Providers owing less than $10,000 in USF support are considered de minimis and do not have to contribute to USF, but must still file the form and pay any TRS and NANP contributions due.

All covered providers must complete the Form 499-A Worksheet (also available as an online form) using 2016 revenue data.  FCC Form 499-A Instructions provide detailed information to assist with completing the form.

If you have any questions regarding these filings, please contact Bruce Beard at (314) 394-1535 or bbeard@cinnamonmueller.com.