[Federal Register Volume 69, Number 237 (Friday, December 10, 2004)]
[Notices]
[Pages 71812-71814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-27158]


=======================================================================
-----------------------------------------------------------------------

FEDERAL COMMUNICATIONS COMMISSION

[CC Docket Nos. 96-45, 98-171 and 97-21; DA 04-3669]


Federal-State Joint Board on Universal Service; 1998 Biennial 
Regulatory Review; Changes to the Board of Directors of the National 
Exchange Carrier Association, Inc.

AGENCY: Federal Communications Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: In this document, the Wireline Competition Bureau (Bureau) 
modifies the deadline for filing revisions to the annual 
Telecommunications Reporting Worksheet (Worksheet or Form 499-A). In 
addition, the Bureau updates the Instructions to the Telecommunications 
Reporting Worksheet, FCC Form 499-A (Instructions). With regard to 
universal service contributions, several parties (Petitioners) have 
filed requests for review of decisions by the Universal Service 
Administrative Company (USAC) rejecting revised Worksheet filings as 
untimely under USAC's processing guidelines. The Bureau grants such 
requests and remands them to USAC for consideration as provided in this 
Order. The Bureau also directs USAC to consider, as provided in this 
Order, any revised Form 499-A filings that are pending before it on the 
release date of this Order, or that it receives between the release 
date of this Order and the effective date of this Order.

DATES: Effective January 10, 2005.

FOR FURTHER INFORMATION CONTACT: Anita Cheng, Assistant Chief, Wireline 
Competition Bureau, Telecommunications Access Policy Division, (202) 
418-7400.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order 
in CC Docket Nos. 96-45, 98-171, and 97-21 released December 7, 2004. 
The full text of this document is available for public inspection 
during regular business hours in the FCC Reference Center, Room CY-
A257, 445 Twelfth Street, SW., Washington, DC, 20554.

I. Introduction

    1. In this Order, the Wireline Competition Bureau (Bureau) modifies 
the deadline for filing revisions to the annual Telecommunications 
Reporting Worksheet (Worksheet or Form 499-A). In addition, we update 
the Instructions to the Telecommunications Reporting Worksheet, FCC 
Form 499-A (Instructions), to clarify our intention to reject as 
untimely any Form 499-A

[[Page 71813]]

revised filing not submitted within twelve months of the due date of 
the original filing in question, if the revision would decrease 
regulatory fees or contributions to support mechanisms for universal 
service, interstate Telecommunications Relay Service, number 
administration, or local number portability. With regard to universal 
service contributions, several parties (Petitioners) have filed 
requests for review of decisions by the Universal Service 
Administrative Company (USAC) rejecting revised Worksheet filings as 
untimely under USAC's processing guidelines. We grant such requests and 
remand them to USAC for consideration as provided in this Order. We 
also direct USAC to consider, as provided in this Order, any revised 
Form 499-A filings that are pending before it on the release date of 
this Order, or that it receives between the release date of this Order 
and the effective date of this Order.
    2. Adoption of a firm deadline for filing revisions to the 
Worksheet will help ensure the stability and sufficiency of the federal 
universal service fund, as contemplated in section 254(d) of the 
Communications Act of 1934, as amended (the Act). We also find that a 
firm deadline for revised Worksheets will improve the integrity of the 
universal service contribution methodology and promote efficiency in 
administration of support mechanisms for universal service, interstate 
Telecommunications Relay Service (TRS), the North American Numbering 
Plan (NANP) and Local Number Portability (LNP), consistent with the 
Commission's rules and policies.

II. Discussion

    3. In this Order, we modify the Form 499-A Instructions by changing 
the deadline for contributors to file revised Form 499-As that would 
result in decreased contribution amounts. We adopt a twelve-month 
deadline for filing revisions to the Form 499-A which would result in a 
decreased contribution amount. Accordingly, any revised 499-A that 
would result in decreased contributions must be submitted by March 31 
of the year after the original filing due date. The prior Instructions 
required revisions within nine months and contemplated the potential 
for revisions beyond that time period if there was good cause for the 
delay in filing and an explanation justifying the change. For the 
reasons described, however, we now find that a firm twelve-month 
deadline for revisions that would result in reduced contributions will 
improve administrative efficiency and certainty for the contribution 
systems for universal service, TRS, NANP, and LNP. We conclude that 
adoption of a firm deadline for filing such revisions to the Worksheet 
will help ensure the stability and sufficiency of the federal universal 
service fund, as contemplated in section 254(d) of the Act, as well as 
the funds for TRS, NANP, and LNP. In addition, we find that a firm 
deadline for revised Worksheets will improve the integrity of the 
universal service contribution methodology and promote efficiency in 
administration of the universal service support mechanisms, consistent 
with the Commission's rules and policies. Our actions today will allow 
USAC and other fund administrators to reduce substantially the need for 
adjustments regarding a given contribution year, providing certainty to 
contributors and their customers.
    4. In our experience, twelve months is a sufficient period of time 
for contributors to revise their 499-A filings for the purpose of 
reducing their contribution obligations. With regard to universal 
service contributions, as discussed, the quarterly-filed 499-Q contains 
information about both projected revenue for the upcoming quarter and 
actual revenue for the past quarter. Each 499-Q filing provides an 
opportunity to report actual revenue information from the prior 
quarter. On April 1 of each year, carriers file revenue information for 
the prior year, which helps to determine whether the revenue 
information in the prior year's 499-Qs was correct. As a result, the 
499-A is an opportunity to correct previously-filed revenue 
information. With the new deadline for filing revisions to the Form 
499-A, carriers will have a window of one entire year in which to 
determine whether revenues reported and contribution amounts paid the 
prior year was too high. Thus, any revised 499-A that is filed by the 
new deadline represents a third opportunity for carriers to review and 
file revenue information for the prior year. With regard to TRS, NANP, 
and LNP contributions, contributors still have two opportunities to 
review and file revenue information (i.e., in the original 499-A filing 
and the revised 499-A filing). We find that twelve months is ample time 
for a diligent filer to determine what revenues it earned the prior 
year. Setting a twelve-month deadline for filing revisions to the 499-A 
as described herein gives contributors adequate time to discover 
errors, while providing incentive to submit accurate revenue 
information in a timely manner. We note that this Order will have 
minimal impact on the payment of regulatory fees because entities pay 
regulatory fees within four months of the original April 1 Form 499-A 
submission, and most entities become aware of any need to file 
revisions at the time of payment.
    5. Form 499-As that are filed after the effective date of this 
Order will be subject to the twelve-month deadline. Thus, contributors 
will be required to submit revisions to the Form 499-A within twelve 
months of the original filing deadline, i.e., March 31 of the 
subsequent year. Revised Form 499-As that are submitted after the 
revision deadline will be rejected by USAC as untimely. Because this 
Order will become effective after the filing deadline for the 2004 Form 
499-A (which was April 1, 2004), contributors will be permitted to 
submit revisions to the 2004 Form 499-A up to twelve months following 
the effective date of this Order.
    6. As explained, several Petitioners have filed requests for review 
of decisions by the Universal Service Administrative Company (USAC) 
rejecting revised Worksheet filings as untimely under USAC's processing 
guidelines. Because the decision we adopt today does not take effect 
until January 10, 2005, these requests (and any other pending requests 
filed before the effective date of this Order) are subject to the 
standard currently in effect. Although this Order adopts USAC's one-
year deadline for the stated reasons, we grant the pending requests for 
review to allow USAC to consider if there was good cause to allow 
revisions beyond the deadline contained in the Instructions. We remand 
these requests to USAC and direct USAC to revise universal service 
contribution obligations as appropriate provided that: (1) the 
Petitioner has demonstrated good cause for submitting the revision 
beyond the one-year revision window; and (2) the Petitioner has 
provided ``an explanation of the cause for the change along with 
complete documentation showing how the revised figures derive from 
corporate financial records.'' That is, USAC shall only revise 
contribution obligations to the extent that the carrier has provided 
accurate and legitimate reasons for filing late and for revising the 
obligation, in accordance with the existing Worksheet Instructions. The 
Petitioners are permitted to supplement their filings to USAC as 
necessary between the release date of this Order and the effective date 
of this Order. To the extent that a request for review encompasses 
issues in addition to revised 499-A issues, we remand to USAC only the 
portion of the request that deals with revised 499-A filings,

[[Page 71814]]

and retain the remainder of the request for disposition by the Bureau 
or Commission.
    7. In addition, we direct USAC to consider any similarly-situated 
revised 499-A filings that it receives between the release date of this 
Order and the effective date of this Order and to revise universal 
service contribution obligations in accordance with the guidelines. In 
the event that there are pending similarly-situated 499-A revisions 
that were filed with USAC prior to the release date of this Order, we 
direct USAC also to consider such filings in accordance with the 
guidelines. These filers are permitted to supplement their filings to 
USAC as necessary between the release date of this Order and the 
effective date of this Order. All filings that are made to USAC in 
connection with this Order should be captioned, ``ATTN: Form 499-A 
Revision Order'' and sent to the Universal Service Administrative 
Company, 2000 L Street, NW., Suite 200, Washington, DC 20036.
    8. The Commission will not send a copy of this Order pursuant to 
the Congressional Review Act, see 5 U.S.C. 801(a)(1)(A).

IV. Ordering Clauses

    9. Pursuant to authority contained in sections 1, 4, and 254 of the 
Communications Act of 1934, as amended, 47 U.S.C. 151, 154, 254, and 
the authority delegated under 0.91, 0.291, 1.3, and 54.711 of the 
Commission's rules, 47 CFR 0.91, 0.291, 1.3, and 54.711, this Order 
shall be effective January 10, 2005.
    10. Pursuant to authority contained in sections 1, 4, and 254 of 
the Communications Act of 1934, as amended, 47 U.S.C. 151, 154, 254, 
and the authority delegated under 0.91, 0.291, 1.3, and 54.711 of the 
Commission's rules, 47 CFR 0.91, 0.291, 1.3, and 54.711, the requests 
for review of decisions by the Universal Service Administrative Company 
listed in the Attachment are remanded to the Universal Service 
Administrative Company for further review.
    11. A copy of this Order shall be transmitted to the Universal 
Service Administrative Company.

Federal Communications Commission.
Jeffrey J. Carlisle,
Chief, Wireline Competition Bureau.

Attachment--Requests for Review of USAC Decisions Rejecting Revised Form
                                 499-As
------------------------------------------------------------------------
             Petitioner                           Date filed
------------------------------------------------------------------------
Access One, Inc.....................  November 23, 2004.
Airnex Communications, Inc..........  December 4, 2003.
Alliance Group Services.............  October 31, 2001.
ARC Networks, Inc...................  November 20, 2001.
Bright Personal Communications        February 10, 2003.
 Services, LLC.
Business Discount Plan, Inc.........  March 3, 2003.
Cooperative Communications, Inc.....  October 3, 2002.
Crown Communication, Inc............  July 23, 2002.
Dial-Thru, Inc......................  February 17, 2004.
Eagle Communications, Inc...........  November 26, 2003.
Equant Inc..........................  September 25, 2003.
Eureka Networks f/k/a Eureka          September 30, 2004.
 Broadband Corporation.
GE Business Productivity Solutions,   July 3, 2002.
 Inc.
Griggs County Telephone Company.....  April 22, 2002.
Morris Communications, Inc..........  July 12, 2002.
New Hope Telephone Company..........  July 3, 2002.
SBC Communications, Inc.............  November 9, 2004.
SES Americom, Inc...................  October 27, 2003.
Total Communications Services, Inc..  September 8, 2003.
------------------------------------------------------------------------

[FR Doc. 04-27158 Filed 12-9-04; 8:45 am]
BILLING CODE 6712-01-P