[Federal Register Volume 76, Number 64 (Monday, April 4, 2011)]
[Proposed Rules]
[Pages 18490-18497]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-7798]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Parts 1 and 64

[CG Docket No. 11-47; FCC 11-38]


Contributions to the Telecommunications Relay Service Fund

AGENCY: Federal Communications Commission.

ACTION: Proposed rule.

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SUMMARY: In this document, the Commission proposes rules to implement 
the ``Twenty-First Century Communications and Video Accessibility Act 
of 2010'' (CVAA) which requires each interconnected voice over Internet 
Protocol (VoIP) service provider and each provider of non-
interconnected VoIP service to participate in and contribute to the 
Telecommunications Relay Services (TRS) Fund. The law directs that 
within one year after the date of enactment of the CVAA, such VoIP 
providers shall participate in and contribute to the Fund in a manner 
prescribed by the Commission by regulation. The regulations must oblige 
such participation in a manner that is consistent with and comparable 
to the obligations of other contributors to the fund.

DATES: Comments are due on or before May 4, 2011. Reply comments are 
due on or before May 19, 2011. Written comments on the proposed 
information collection requirements, subject to the Paperwork Reduction 
Act (PRA) of 1995, Public Law 104-13, should be submitted on or before 
June 3, 2011.

ADDRESSES: You may submit comments, identified by [CG Docket No. 11-
47], by any of the following methods:
     Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the Commission's Electronic Comment 
Filing System (ECFS) http://fjallfoss.fcc.gov/ecfs2/ or the Federal 
eRulemaking Portal: http://www.regulations.gov. Filers should follow 
the instructions provided on the Web site for submitting comments and 
transmit one electronic copy of the filing to each docket number 
referenced in the caption, which in this case is CG Docket No. 11-47. 
For ECFS filers, in completing the transmittal screen, filers should 
include their full name, U.S. Postal Service mailing address, and the 
applicable docket number.
     Parties may also submit an electronic comment by Internet 
e-mail. To get filing instructions, filers should send an e-mail to 
[email protected], and include the following words in the body of the 
message, ``get form .'' A sample form and 
directions will be sent in response.
     Paper Filers: Parties who choose to file by paper must 
file an original and four copies of each filing. In addition, parties 
must send one copy to the Commission's duplicating contractor, Best 
Copy and Printing, Inc., 445 12th Street, SW., Washington, DC 20554, or 
via e-mail to [email protected]. Filings can be sent by hand or messenger 
delivery, by commercial overnight courier, or by first-class or 
overnight U.S. Postal Service mail. All filings must be addressed to 
the Commission's Secretary, Office of the Secretary, Federal 
Communications Commission.
     All hand-delivered or messenger-delivered paper filings 
for the Commission's Secretary must be delivered to FCC Headquarters at 
445 12th St., SW., Room TW-A325, Washington, DC 20554. All hand 
deliveries must be held together with rubber bands or fasteners.
     Envelopes must be disposed of before entering the 
building. The filing hours are 8 a.m. to 7 p.m.
     Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9300 East Hampton 
Drive, Capitol Heights, MD 20743. U.S. Postal Service first-class, 
Express, and Priority mail must be addressed to 445 12th Street, SW., 
Washington DC 20554.
    In addition, document FCC 11-38 contains proposed information 
collection requirements subject to the PRA. It will be submitted to the 
Office of Management and Budget (OMB) for review under section 3507 of 
the PRA. OMB, the general public, and other Federal agencies are 
invited to comment on the proposed information collection requirements 
contained in this document. PRA comments should be submitted to Cathy 
Williams, Federal Communications Commission via e-mail at [email protected] 
and [email protected] and Nicholas A. Fraser, Office of Management 
and Budget via fax at 202-395-5167 or via e-mail to [email protected].

FOR FURTHER INFORMATION CONTACT: Rosaline Crawford, Consumer and 
Governmental Affairs Bureau, Disability Rights Office, at (202) 418-
2075 or e-mail [email protected].
    For additional information concerning the PRA information 
collection requirements contained in this document, contact Cathy 
Williams, Federal Communications Commission,

[[Page 18491]]

at (202) 418-2918, or via e-mail [email protected].

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's 
Contributions to the Telecommunications Relay Service Fund, Notice of 
Proposed Rulemaking (NPRM), document FCC 11-38, adopted March 2, 2011, 
released March 3, 2011, in CG Docket No. 11-47.
    The full text of document FCC 11-38 and copies of any subsequently 
filed documents in this matter will be available for public inspection 
and copying via ECFS, and during regular business hours at the FCC 
Reference Information Center, Portals II, 445 12th Street, SW., Room 
CY-A257, Washington, DC 20554. They may also be purchased from the 
Commission's duplicating contractor, Best Copy and Printing, Inc., 
Portals II, 445 12th Street, SW., Room CY-B402, Washington, DC 20554, 
telephone: (800) 378-3160, fax: (202) 488-5563, or Internet: http://
www.bcpiweb.com. Document FCC 11-38 can also be downloaded in Word or 
Portable Document Format (PDF) at http://www.fcc.gov/cgb/dro/trs.html#orders. To request materials in accessible formats for people 
with disabilities (Braille, large print, electronic files, audio 
format), send an e-mail to [email protected] or call the Consumer and 
Governmental Affairs Bureau at 202-418-0530 (voice), 202-418-0432 
(TTY). To view a copy of this information collection request (ICR) 
submitted to OMB: (1) Go to the Web page http://www.reginfo.gov/public/do/PRAMain, (2) look for the section of the Web page called ``Currently 
Under Review,'' (3) click on the downward-pointing arrow in the 
``Select Agency'' box below the ``Currently Under Review'' heading, (4) 
select ``Federal Communications Commission'' from the list of agencies 
presented in the ``Select Agency'' box, (5) click the ``Submit'' button 
to the right of the ``Select Agency'' box, (6) when the list of FCC 
ICRs currently under review appears, look for the Title of this ICR and 
then click on the ICR Reference Number. A copy of the FCC submission to 
OMB will be displayed.
    Pursuant to 47 CFR 1.1200 et. seq., this matter shall be treated as 
a ``permit-but-disclose'' proceeding in accordance with the 
Commission's ex parte rules. Persons making oral ex parte presentations 
are reminded that memoranda summarizing the presentations must contain 
summaries of the substances of the presentations and not merely a 
listing of the subjects discussed. More than a one or two sentence 
description of the views and arguments presented is generally required. 
Other rules pertaining to oral and written ex parte presentations in 
permit-but-disclose proceedings are set forth in 47 CFR 1.1206 (b).

Initial Paperwork Reduction Act of 1995 Analysis

    The Commission, as part of its continuing effort to reduce 
paperwork burdens, invites the general public and OMB to comment on the 
proposed information collection requirements contained in this 
document, as required by the PRA. Public and agency comments are due 
June 3, 2011. Comments should address: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information 
shall have practical utility; (b) the accuracy of the Commission's 
burden estimates; (c) ways to enhance the quality, utility, and clarity 
of the information collected; (d) ways to minimize the burden of the 
collection of information on the respondents, including the use of 
automated collection techniques or other forms of information 
technology; and (e) ways to further reduce the information collection 
burden on small business concerns with fewer than 25 employees. In 
addition, pursuant to the Small Business Paperwork Relief Act of 2002, 
Public Law 107-198, see 44 U.S.C. 3506 (c)(4), the Commission seeks 
specific comment on how it may ``further reduce the information 
collection burden for small business concerns with fewer than 25 
employees.''
    OMB Control Number: 3060-0855.
    Title: Telecommunications Reporting Worksheets and Related 
Collections.
    Form No.: FCC Forms 499-A and 499-Q.
    Type of Review: Revision of a currently approved collection.
    Respondents: Businesses or other for-profit entities; Not-for-
profit institutions.
    Number of Respondents and Responses: 8,183 respondents and 46,957 
responses.
    Estimated Time per Response: .25 hours to 25 hours.
    Frequency of Response: Annual, on-occasion and quarterly reporting 
requirement; Recordkeeping requirement; Third party disclosure 
requirement.
    Obligation to Respond: Mandatory. Statutory authority for this 
information collection is contained in sections 151, 154(i), 154(j), 
155, 157, 201, 205, 214, 225, 254, 303(r), 715 and 719 of the Act, 47 
U.S.C. 151, 154(i), 154(j), 155, 157, 201, 205, 214, 225, 254, 303(r), 
616, and 620.
    Total Annual Burden: 313,881 hours.
    Total Annual Costs: None.
    Nature and Extent of Confidentiality: The Commission will allow 
respondents to certify that data contained in their submissions is 
privileged or confidential commercial or financial information and that 
disclosure of such information would likely cause substantial harm to 
the competitive position of the entity filing the FCC worksheets. If 
the Commission receives a request for or proposes to disclose the 
information, the respondent would be required to make the full showing 
pursuant to the Commission's rules for withholding from public 
inspection information submitted to the Commission.
    Privacy Act Impact Assessment: No impact(s).
    Needs and Uses: In document FCC 11-38, the Commission proposes 
rules to require contributions to the Telecommunications Relay Service 
Fund (TRS Fund) by non-interconnected Voice over Internet Protocol 
(VoIP) service providers with interstate end-user revenues. In section 
103(b) of the CVAA, Congress added a new section 715 to the 
Communications Act of 1934, as amended (the Act), which directs the 
Commission, within one year after the date of enactment of the CVAA, to 
require each interconnected VoIP service provider and each provider of 
non-interconnected VoIP service to participate in and contribute to the 
TRS Fund established in Sec.  64.604(c)(5)(iii) of the Commission's 
rules, as in effect on the date of enactment of such Act, in a manner, 
to be prescribed by the Commission by regulation, that is consistent 
with and comparable to the obligations of other contributors to the TRS 
Fund. In 2007, the Commission added interconnected VoIP service 
providers to the providers of interstate and international 
telecommunications services that contribute to the TRS Fund. See VoIP 
TRS Order, published at 72 FR 43546, August 6, 2007.
    The NPRM proposes to extend these obligations to non-interconnected 
VoIP service providers. This would require them to register using 
blocks 1, 2, and 6 of the FCC Form 499-A, and to annually file the 
completed form with the Commission. The NPRM makes other proposals 
regarding the TRS Fund rules that do not contain any paperwork 
requirements.

Synopsis

    1. In document FCC 11-38, the Commission proposes rules to

[[Page 18492]]

implement section 103(b) of the CVAA, Public Law 111-260. The CVAA 
added a new section 715 to the Act which requires each interconnected 
VoIP service provider and each provider of non-interconnected VoIP 
service to participate in and contribute to the TRS Fund. Section 715 
of the Act also requires the Commission to adopt regulations to provide 
for obligations of such providers that are consistent with and 
comparable to the obligations of other contributors to the TRS Fund. 
Currently, providers of interstate and international telecommunications 
services and interconnected VoIP service contribute to the TRS Fund but 
non-interconnected VoIP providers do not. In document FCC 11-38, the 
Commission proposes: to conform the definition of ``interconnected VoIP 
service with the definition in the CVAA and to define ``non-
interconnected VoIP service''; amend the Commission's rules to 
specifically require interconnected and non-interconnected VoIP service 
providers to contribute to the TRS Fund in a manner that is consistent 
with and comparable to the obligations of other contributors to the 
Fund; amend the Commission's rules to apply the $25 per year minimum 
contribution requirement only to contributors who have subject 
revenues; and make other editorial changes to the Commission's Rules 
deemed appropriate and necessary. Document FCC 11-38 also seeks comment 
on issues relating to the provision of free services, administrative 
costs of providers, possible zero and de minimis contributions, 
registration requirements, the completion and submission of 
Telecommunications Reporting Worksheets (FCC Form 499-A), adopting an 
interim safe harbor percentage for calculating interstate end-user 
revenues, reporting billed or collected revenues, and the 
implementation deadline.

Background

Interconnected VoIP Services

    2. In 2007, the Commission extended section 225's TRS requirements 
to interconnected VoIP service providers, including that such providers 
must contribute to the TRS Fund. Since 2006, interconnected VoIP 
service providers have been required to report their annual interstate 
end-user telecommunications revenue information on FCC Form 499-A for 
the purpose of the Universal Service Fund (USF) contribution 
requirements.
    3. Providers of ``non-interconnected VoIP service'' have not been 
required to contribute to the TRS Fund and have not been required to 
register or report revenues through the annual filing of FCC Form 499-A 
for any purpose. Examples of VoIP services that are not within the 
Commission's definition of ``interconnected VoIP'' include one-way VoIP 
services (i.e., services that enable users to terminate calls to the 
Public Switched Telephone Network (PSTN), but do not permit users to 
receive calls that originate on the PSTN, or enable users to receive 
calls from the PSTN, but do not permit the user to make calls 
terminating to the PSTN) and IP-based voice services that do not 
require a broadband connection.

Discussion

    4. The CVAA defines ``non-interconnected VoIP'' service as a 
service that ``enables real-time voice communications that originate 
from or terminate to the user's location using Internet protocol or any 
successor protocol; and requires Internet protocol compatible customer 
premises equipment; and does not include any service that is an 
interconnected VoIP service''.
    5. Section 9.3 of the Commission's rules defines ``interconnected 
VoIP service'' as a service that enables real-time, two-way voice 
communications; requires a broadband connection from the user's 
location; requires Internet protocol-compatible customer premises 
equipment (``CPE''); and permits users generally to receive calls that 
originate on the PSTN and to terminate calls to the PSTN. Section 101 
of the CVAA requires the Commission to define ``interconnected VoIP 
service'' as that term is defined under Sec.  9.3 of the Commission's 
rules, ``as such section may be amended from time to time.'' Document 
FCC 11-38 proposes to amend the TRS rules to remove the actual text of 
the definition, and instead codify the following language provided in 
the CVAA: ``The term `interconnected VoIP service' has the meaning 
given such term under Sec.  9.3 of title 47, Code of Federal 
Regulations, as such section may be amended from time to time.'' It 
seeks comment on this proposal.

Participation in and Contribution to the TRS Fund

    6. Carriers and interconnected VoIP service providers are currently 
required to contribute the TRS Fund and, since 2007, interconnected 
VoIP service providers have been reporting revenues for this purpose on 
FCC Form 499-A. The NPRM proposes to continue using that form for 
interconnected VoIP service and to extend that requirement to non-
interconnected VoIP service providers. It seeks comment on this 
proposal.
    7. The current FCC Form 499-A and instructions are not designed to 
collect revenue or other information from providers of ``non-
interconnected VoIP services.'' The NPRM proposes that the Wireline 
Competition Bureau, in consultation with the Commission's Consumer and 
Governmental Affairs Bureau, make any revisions to the FCC Form 499-A 
or its instructions that may be necessary to effectuate the 
requirements of section 715 of the Act. It seeks comment on this 
proposal.
    8. Revenue Base. Currently, contributions to the TRS Fund are 
assessed based on ``interstate end-user telecommunications revenues.'' 
The NPRM proposes to require non-interconnected VoIP service providers 
to report their interstate end-user revenues as ``telecommunications 
revenues'' on the FCC Form 499-A, for the limited purpose of 
determining required TRS Fund contributions, and to contribute to the 
TRS Fund. Requiring providers of non-interconnected VoIP services to 
report interstate end-user revenues as ``telecommunications revenues'' 
would be consistent with how interconnected VoIP providers have been 
reporting assessable revenues on the FCC Form 499-A.
    9. Because some VoIP service providers offer some or all of their 
services free to the public, the NPRM asks for comment on how the 
Commission can ensure their participation and contributions are 
consistent with and comparable to the obligations of other contributors 
to the TRS Fund. For example, it asks whether it would be appropriate 
to assess contributions from providers of free VoIP services based on 
revenues from sources other than the ``interstate end-user revenues of 
such services'' such as revenues from advertisers, donors, or other 
revenue sources. The NPRM also seeks input on whether and how to 
account for end-user revenues associated with VoIP services when those 
services are provided as part of or in combination with other services 
such as Internet-based customer services or video games that generate 
revenue, or can the revenues associated with the VoIP service be 
disaggregated from the revenue, if any, associated with the non-VoIP 
service. The NPRM seeks comment on these issues.
    10. Administrative Costs to the Provider. The Senate Report to the 
CVAA permits the Commission to ``consider administrative costs to the 
provider when calculating contributions'' and to ``determine that an

[[Page 18493]]

obligation for any one provider could be zero or a de minimis amount.'' 
The NPRM seeks comment on the types of ``administrative costs to the 
provider'' that could be reported and how these may be considered when 
calculating contributions. It also seeks comment on how 
``administrative costs to the provider'' might be considered when 
calculating contributions for a TRS Fund contributor that provides free 
services and therefore reports no subject revenues. Additionally, if 
administrative costs of interconnected or non-interconnected VoIP 
service providers are taken into consideration when calculating 
contributions, the NPRM seeks comment on the extent to which they 
should be considered any differently than the administrative costs of 
carriers or others required to contribute to the TRS Fund under the 
Commission's rules.
    11. Minimum Contribution Requirement. Currently, carriers and 
interconnected VoIP service providers are required to file with USAC, 
by April 1st of each year, a completed FCC Form 499-A, which is used in 
part to calculate contributions to the TRS Fund. Filers are instructed 
to enter ``0'' on any line for which the filer had no revenues for the 
year. The NPRM seeks comment on whether a service that is offered 
wholly for free to the public would result in a filer reporting no end-
user revenues for such service for the year.
    12. The Commission has previously held that the $25 minimum TRS 
Fund contribution requirement applies to all telecommunications 
carriers that have end-user revenues. The NPRM tentatively concludes 
that VoIP service providers that have no subject revenue for the 
respective reporting year should not be subject to this minimum 
contribution amount and seeks comment on this tentative conclusion. 
Alternatively, the NPRM seeks comment on whether VoIP service providers 
that report no subject revenue for the reporting year should be 
assessed a de minimis contribution amount.
    13. Conforming Amendments to Rules. The NPRM also proposes making 
conforming amendments to the Commission's rules. The NPRM proposes, and 
seeks comment on, replacing the terms ``carrier,'' ``carriers,'' and 
``service providers'' in Sec.  64.604(c)(5)(iii)(B) of the Commission's 
rules with the term ``contributor(s)'' and replacing ``interstate end-
user telecommunications revenues'' in Sec.  64.604(c)(5)(iii)(B) of the 
Commission's rules and ``interstate end-user revenues of such 
services'' in Sec.  64.604(c)(5)(iii)(B) of the Commission's rules with 
the phrase ``revenues subject to contributions.''
    14. Meaning of ``Participate In.'' Section 715 of the Act requires 
each interconnected VoIP service provider and each provider of non-
interconnected VoIP service to ``participate in and contribute to the 
[TRS] Fund.'' The NPRM tentatively concludes that the term 
``participate in'' includes the requirement for contributors to 
complete and submit a Telecommunications Reporting Worksheet (FCC Form 
499-A) annually and seeks comment on this conclusion and the meaning of 
the term ``participate in'' in this context.
    15. Contributor Registration. The process of completing and 
submitting the FCC Form 499-A includes a registration process of the 
filing entity. All current TRS Fund contributors have completed this 
registration process. The NPRM tentatively concludes that requiring all 
providers of non-interconnected VoIP services to similarly register 
with the Commission and designate a District of Columbia agent for 
service of process using the FCC Form 499-A in accordance with its 
instructions will facilitate the Commission's enforcement of TRS Fund 
contribution obligations and is consistent with the congressional 
mandate for consistent and comparable obligations. The NPRM proposes to 
amend the registration requirements in Sec.  64.1195 of the 
Commission's rules to include non-interconnected VoIP service providers 
or to adapt those rules for non-interconnected VoIP service providers 
under the Commission's TRS rules. Finally, the NPRM seeks comment on 
whether Sec.  1.47(h) of the Commission's rules should be amended to 
include providers of non-interconnected VoIP services among those 
required to designate a District of Columbia agent for service of 
process.
    16. Safe Harbor. The NPRM seeks comment on whether, for purposes of 
TRS Fund contribution calculations, a non-interconnected VoIP service 
provider should be permitted to report its interstate end-user revenues 
in FCC Form 499-A by using actual revenues, using a traffic study, or 
using the interim safe harbor percentage (64.9 percent).
    17. Billed or Collected Revenues. FCC Form 499-A filers are 
instructed to provide information about interstate end-user 
telecommunications revenues that are ``billed'' (or ``earned'') or 
``uncollectible'' rather than revenues ``collected.'' The NPRM seeks 
comment on whether calculations of TRS Fund contributions should be 
based on each contributor's collected revenues rather than billed 
revenues.
    18. Implementation Deadline. Section 715 of the Act requires 
``[w]ithin one year after the date of enactment of the CVAA'' each 
interconnected VoIP service provider and each provider of non-
interconnected VoIP service to participate in and contribute to the TRS 
Fund ``in a manner prescribed by the Commission by regulation.'' The 
one-year deadline has already been met with regard to interconnected 
VoIP service providers because they have been reporting revenues and 
contributing to the TRS Fund annually since 2007. The NPRM proposes to 
require non-interconnected VoIP service providers to register and 
designate a District of Columbia agent for service of process by 
September 30, 2011, using the FCC Form 499-A in accordance with its 
instructions. It also proposes to require all non-interconnected VoIP 
service providers to complete and submit FCC Form 499-A by April 1, 
2012 to report interstate end-user revenues for such services for the 
period from October 1 through December 31, 2011. Finally, it proposes 
to begin assessing non-interconnected VoIP service providers for TRS 
contributions based on revenues reported for the October through 
December 2011 period for the 2012 through 2013 TRS Fund year (July 1, 
2012 through June 30, 2013). The NPRM seeks comments on these 
proposals.

Initial Regulatory Flexibility Analysis

    19. The Regulatory Flexibility Act of 1980, as amended (RFA), 
requires that an initial regulatory flexibility analysis be prepared 
for notice-and-comment rulemaking proceedings, unless the agency 
certifies that ``the rule will not, if promulgated, have a significant 
economic impact on a substantial number of small entities.'' The 
Commission has certified that the rules proposed in document FCC 11-38, 
if promulgated, will not have a significant economic impact on a 
substantial number of small entities.
    20. The RFA generally defines the term ``small entity'' as having 
the same meaning as the terms ``small business,'' ``small 
organization,'' and ``small governmental jurisdiction.'' In addition, 
the term ``small business'' has the same meaning as the term ``small 
business concern'' under the Small Business Act. A ``small business 
concern'' is one that: (1) Is independently owned and operated; (2) is 
not dominant in its field of operation; and (3) satisfies any 
additional criteria established by the Small Business Administration 
(SBA).
    21. In document FCC 11-38, the Commission seeks comment on its

[[Page 18494]]

proposal to implement section 103(b) of the CVAA, signed into law by 
President Obama on October 8, 2010, that requires the Commission to 
establish rules requiring each interconnected VoIP service provider and 
each provider of non-interconnected VoIP service to participate in and 
contribute to the interstate TRS Fund beginning within one year of the 
enactment of the CVAA.
    22. The TRS Fund compensates providers of TRS for their reasonable 
costs of providing the service on an interstate basis. Document FCC 11-
38 seeks comment on, and proposes rules, to implement section 103(b) of 
the CVAA and to require providers of non-interconnected VoIP service to 
participate in and contribute to the TRS Fund in a manner that is 
consistent with and comparable to other contributors. Document FCC 11-
38 also seeks comment on issues relating to the possible zero and de 
minimis contributions in connection with the provision of free services 
and the administrative costs of providers, registration requirements, 
the completion and submission of Telecommunications Reporting 
Worksheets (FCC Form 499-A), the adoption of an interim safe harbor 
percentage for calculating interstate end-user revenues, and the 
implementation deadline.
    23. Specifically, document FCC 11-38 proposes: to require providers 
of non-interconnected VoIP service to register with the Commission and 
designate a District of Columbia agent for service of process for 
purposes of contributing to the TRS Fund; to complete and file FCC Form 
499-A annually; to permit providers of non-interconnected VoIP service 
to determine interstate end-user revenues by using actual revenues, a 
traffic study or to utilize a safe harbor; and to exempt service 
providers with no end user revenues for the reporting year from the $25 
minimum contribution requirement to the TRS Fund. It also seeks comment 
on whether sources of revenue other than interstate end-user revenues 
(e.g., advertising, donations) should be considered when a service 
provider has no end-user revenues (i.e., when services are provided to 
the public for free) and whether TRS Fund contributions should be based 
on each contributor's collected revenues rather than billed revenues.
    24. The Commission proposes to require that non-interconnected VoIP 
service providers register and designate a District of Columbia agent 
for service of process by filling out blocks 1, 2, and 6 of the FCC 
Form 499-A and to annually file the completed Form with the Commission. 
This is consistent with the Congressional mandate in section 103(b) of 
the CVAA to require providers of non-interconnected VoIP service to 
participate in and contribute to the TRS Fund in a manner that is 
consistent with and comparable to the obligations of other contributors 
to the Fund. Such reporting would be for the limited purpose of 
determining required TRS Fund contributions and would not prejudge 
issues concerning the appropriate regulatory classification of VoIP 
services. It has previously been estimated that filling out the FCC 
Form 499-A takes 13.5 hours (i.e., less than two work days of a single 
full-time employee) annually. Thus, filling out the form does not have 
a significant economic impact upon small entities.
    25. Document FCC 11-38 seeks comment on how the Commission can best 
ensure that the obligations of VoIP service providers that offer some 
or all of their interstate services free to the public are consistent 
with and comparable to the obligations of other contributors to the TRS 
Fund. Section 225(d)(3)(B) of the Act requires the Commission to adopt 
regulations that costs caused by interstate telecommunications relay 
service be recovered from ``all subscribers'' for every interstate 
service. Document FCC 11-38 seeks comment on whether it would be 
necessary or appropriate to assess contributions from providers of free 
VoIP services based on revenues from sources other than the 
``interstate end-user revenues of such services,'' such as advertising 
and donor contributions, or whether TRS Fund contributions of VoIP 
providers should be based solely on interstate end-user revenues, even 
if that results in a zero contribution. Because the typical 
contribution historically has been slightly less than 1% of revenues 
annually, this will not have a significant economic impact upon small 
entities.
    26. Additionally, the TRS rules currently impose a minimum $25 
contribution on all entities, regardless of their reported revenues. 
Document FCC 11-38 proposes that if the Commission determines that 
contributions to the TRS Fund are to be based solely on interstate end-
user revenues, VoIP providers and other carriers subject to TRS Fund 
contribution requirements with a zero contribution calculation (i.e., 
they either did not charge for end-user service or generated some end-
user revenue but it was offset by administrative costs that cancelled 
out the revenue) not be subject to the minimum $25 contribution. If 
this proposal is not adopted, alternatively, document FCC 11-38 seeks 
comment on whether a VoIP service provider that reports no revenue for 
the reporting year should be assessed a ``de minimis'' contribution 
amount. Even if the Commission applies the minimum $25 annual 
contribution to the TRS Fund to providers with a zero contribution 
calculation, it would not constitute a significant economic impact upon 
small entities.
    27. The Commission has previously recognized that some 
interconnected VoIP service providers may have difficulty complying 
with the end-user revenue reporting requirements because they do not 
have the ability to identify whether calls are interstate. As a result, 
the Commission established a safe harbor which estimated the percentage 
of interconnected VoIP service revenues attributable to interstate 
calls to be 64.9%. These VoIP service providers may report their 
interstate end-user revenues on the FCC Form 499-A by using actual 
revenues, a traffic study or the safe harbor. Document FCC 11-38 seeks 
comment on whether the Commission should also apply the safe harbor to 
non-interconnected VoIP service providers. Because the safe harbor is 
used when it reduces TRS Fund contributions, application of it to non-
interconnected VoIP services will not have any significant negative 
economic impact upon small entities.
    28. Document FCC 11-38 also requests input on whether to modify the 
FCC Form 499-A to ask filers to provide information on ``collected'' 
(i.e. earned) revenues rather than, as currently, on ``billed'' (i.e., 
potentially uncollectible) revenues. This would harmonize the basis for 
TRS Fund contributions with those for the Universal Service Fund, which 
bases contributions on ``collected'' revenues. Because it would relieve 
providers of basing their contribution to the TRS Fund on billed 
revenues, it would reduce TRS Fund contributions and therefore would 
not have any significant negative economic impact upon small entities.
    29. Finally, the CVAA requires that VoIP service providers begin 
participating in, and contributing to, the TRS Fund within one year of 
the date of the CVAA's enactment. This deadline has been met with 
regard to interconnected VoIP service providers who have been 
participating in the Fund since 2007. To meet the statutory deadline, 
document FCC 11-38 proposes to require non-interconnected VoIP service 
providers to register by September 30, 2011 by completing blocks 1, 2 
and 6 of the FCC Form 499-A, and to complete and submit the Form by 
April 1, 2012, reporting their end-user revenues for the period from 
October 1 through December 31, 2011.

[[Page 18495]]

This uniform registration deadline is mandated by statute and will not 
have a significant adverse economic impact upon small entities.
    30. With regard to whether a substantial number of small entities 
may be economically impacted by the requirements proposed in document 
FCC 11-38, the Commission notes that a substantial number of small 
entities will be likely be affected; however, for the reasons stated 
above, the cumulative economic impact on such entities will be de 
minimis. Most participating entities are likely to meet the definition 
of a small entity as a ``small organization.'' VoIP service providers 
are included in the census business category ``All Other 
Telecommunications.'' This category comprises ``establishments 
primarily engaged in providing specialized telecommunications services, 
such as satellite tracking, communications telemetry, and radar station 
operation. This industry also includes establishments primarily engaged 
in providing satellite terminal stations and associated facilities 
connected with one or more terrestrial systems and capable of 
transmitting telecommunications to, and receiving telecommunications 
from, satellite systems. Establishments providing Internet services or 
VoIP services via client-supplied telecommunications connections are 
also included in this industry.'' For this category, Census Bureau data 
for 2007 show that there were a total of 2,383 firms that operated for 
the entire year. Of this total, 2,347 firms had annual receipts of 
under $25 million and 12 firms had annual receipts of $25 million to 
$49,999,999. Consequently, the Commission estimates that the majority 
of All Other Telecommunications firms are small entities that might be 
affected by our action.
    31. Historically, the contributions to the TRS Fund have totaled 
slightly less than 1% of revenues. Moreover, many non-interconnected 
VoIP service providers offer their services for free and, unless 
revenue sources other than end-user interstate revenues are included, 
will have no annual contribution or the de minimis $25 contribution, 
depending on the outcome of this proceeding. Accordingly, the 
Commission concludes that a zero or $25 contribution is a de minimis 
amount.
    32. Therefore, based on the foregoing analysis of all foreseeable 
economic impacts, the Commission certifies that the proposals in 
document FCC 11-38, if adopted, will not have a significant economic 
impact on a substantial number of small entities.
    33. The Commission will send a copy of the document FCC 11-38, 
including a copy of this Initial Regulatory Flexibility Certification, 
to the Chief Counsel for Advocacy of the SBA.

Ordering Clauses

    Pursuant to the authority contained in sections 1, 4(i), 4(j), 225, 
and 715 of the Communications Act of 1934, as amended, 47 U.S.C. 151, 
154(i), 154(j), 225, and 616, document FCC 11-38 IS ADOPTED. The 
Commission's Consumer and Governmental Affairs Bureau, Reference 
Information Center, SHALL SEND a copy of document FCC 11-38, including 
the Initial Regulatory Flexibility Certification, to the Chief Counsel 
for Advocacy of the Small Business Administration.

List of Subjects

47 CFR Part 1

    Communications common carriers, Reporting and recordkeeping 
requirements, Telecommunications.

47 CFR Part 64

    Reporting and recordkeeping requirements, Telecommunications, 
Telephone.

Federal Communications Commission.
Bulah Wheeler,
Deputy Manager.

Proposed Rules

    For the reasons discussed in the preamble, the Federal 
Communications Commission proposes to amend 47 CFR parts 1 and 64 as 
follows:

PART 1--PRACTICE AND PROCEDURE

    1. The authority citation for part 1 continues to read as follows:

    Authority:  15 U.S.C. 79 et seq.; 47 U.S.C. 151, 154(i), 154(j), 
155, 157, 225, 303(r), and 309.
    2. In Sec.  1.47, revise paragraph (h) to read as follows:


Sec.  1.47  Service of documents and proof of service.

* * * * *
    (h) Every common carrier and interconnected VoIP provider, as 
defined in Sec.  54.5 of this chapter, and non-interconnected VoIP 
provider, as defined in Sec.  64.601(a)(15) of this chapter, that is 
subject to the Communications Act of 1934, as amended, shall designate 
an agent in the District of Columbia, and may designate additional 
agents if it so chooses, upon whom service of all notices, process, 
orders, decisions, and requirements of the Commission may be made for 
and on behalf of such carrier, interconnected VoIP provider, or non-
interconnected VoIP provider in any proceeding before the Commission. 
Such designation shall include, for the carrier, interconnected VoIP 
provider, or non-interconnected VoIP provider and its designated 
agents, a name, business address, telephone or voicemail number, 
facsimile number, and, if available, Internet e-mail address. Such 
carrier, interconnected VoIP provider, or non-interconnected VoIP 
provider shall additionally list any other names by which it is known 
or under which it does business, and, if the carrier, interconnected 
VoIP provider, or non-interconnected VoIP provider is an affiliated 
company, the parent, holding, or management company. Within thirty (30) 
days of the commencement of provision of service, such carrier, 
interconnected VoIP provider, or non-interconnected VoIP provider shall 
file such information with the Chief of the Enforcement Bureau's Market 
Disputes Resolution Division. Such carriers, interconnected VoIP 
providers, and non-interconnected VoIP providers may file a hard copy 
of the relevant portion of the Telecommunications Reporting Worksheet, 
as delineated by the Commission in the Federal Register, to satisfy 
this requirement. Each Telecommunications Reporting Worksheet filed 
annually by a common carrier, interconnected VoIP provider, or non-
interconnected VoIP provider must contain a name, business address, 
telephone or voicemail number, facsimile number, and, if available, 
Internet e-mail address for its designated agents, regardless of 
whether such information has been revised since the previous filing. 
Carriers, interconnected VoIP providers, and non-interconnected VoIP 
providers must notify the Commission within one week of any changes in 
their designation information by filing revised portions of the 
Telecommunications Reporting Worksheet with the Chief of the 
Enforcement Bureau's Market Disputes Resolution Division. A paper copy 
of this designation list shall be maintained in the Office of the 
Secretary of the Commission. Service of any notice, process, orders, 
decisions or requirements of the Commission may be made upon such 
carrier, interconnected VoIP provider, or non-interconnected VoIP 
provider by leaving a copy thereof with such designated agent at his 
office or usual place of residence. If such carrier, interconnected 
VoIP provider, or non-interconnected VoIP provider fails to designate 
such an agent, service of any notice or other process in any proceeding 
before the Commission, or of

[[Page 18496]]

any order, decision, or requirement of the Commission, may be made by 
posting such notice, process, order, requirement, or decision in the 
Office of the Secretary of the Commission.

PART 64--MISCELLANEOUS RULES RELATING TO COMMON CARRIERS

    3. The authority citation for part 64 is revised to read as 
follows:

    Authority:  47 U.S.C. 154, 254(k); secs. 404(b)(2(B), (c), Pub. 
L. 104-104, 110 Stat. 56. Interpret or apply 47 U.S.C, 201, 218, 
222, 225, 226, 228, 254(k), 616, and 620, unless otherwise noted.

Subpart F--Telecommunications Relay Services and Related Customer 
Premises Equipment for Persons With Disabilities

    4. The authority citation for subpart F is revised to read as 
follows:

    Authority:  47 U.S.C. 151-154; 225, 255, 303(r), 616, and 620.

    5. In Sec.  64.601, revise paragraph (a)(10), redesignate 
paragraphs (a)(15) through (a)(27) as paragraphs (a)(16) through 
(a)(28), and by adding new paragraph (a)(15) to read as follows:


Sec.  64.601  Definitions and provisions of general applicability.

    (a) * * *
    (10) Interconnected VoIP service. The term ``interconnected VoIP 
service'' has the meaning given such term under Sec.  9.3 of title 47, 
Code of Federal Regulations, as such section may be amended from time 
to time.
* * * * *
    (15) Non-interconnected VoIP service. The term ``non-interconnected 
VoIP service''--
    (i) means a service that--
    (A) enables real-time voice communications that originate from or 
terminate to the user's location using Internet protocol or any 
successor protocol; and
    (B) requires Internet protocol compatible customer premises 
equipment; and
    (ii) does not include any service that is an interconnected VoIP 
service.
* * * * *
    6. In Sec.  64.604, revise paragraphs (c)(5)(iii)(A) and 
(c)(5)(iii)(B), remove paragraph (c)(5)(iii)(D), redesignate paragraph 
(c)(5)(iii)(C) as paragraph (c)(5)(iii)(D), and add new paragraph 
(c)(5)(iii)(C) to read as follows:


Sec.  64.604  Mandatory minimum standards.

* * * * *
    (c) * * *
    (5) * * *
    (iii) * * *
    (A) Contributions. Every carrier providing interstate 
telecommunications services (including interconnected VoIP service 
providers pursuant to Sec.  64.601(b)) and every provider of non-
interconnected VoIP service shall contribute to the TRS Fund on the 
basis of interstate end-user telecommunications revenues as described 
herein. Contributions shall be made by all carriers who provide 
interstate services, including, but not limited to, cellular telephone 
and paging, mobile radio, operator services, personal communications 
service (PCS), access (including subscriber line charges), alternative 
access and special access, packet-switched, WATS, 800, 900, message 
telephone service (MTS), private line, telex, telegraph, video, 
satellite, intraLATA, international and resale services. For purposes 
of this paragraph, telecommunications revenues include revenues from 
non-interconnected VoIP services.
    (B) Contribution computations. Contributors' contributions to the 
TRS fund shall be the product of their subject revenues for the prior 
calendar year and a contribution factor determined annually by the 
Commission. The contribution factor shall be based on the ratio between 
expected TRS Fund expenses to the contributors' revenues subject to 
contribution. In the event that contributions exceed TRS payments and 
administrative costs, the contribution factor for the following year 
will be adjusted by an appropriate amount, taking into consideration 
projected cost and usage changes. In the event that contributions are 
inadequate, the fund administrator may request authority from the 
Commission to borrow funds commercially, with such debt secured by 
future years' contributions. Each subject contributor that has revenues 
subject to contribution must contribute at least $25 per year. 
Contributors whose annual contributions total less than $1,200 must pay 
the entire contribution at the beginning of the contribution period. 
Contributors whose contributions total $1,200 or more may divide their 
contributions into equal monthly payments. Contributors shall complete 
and submit, and contributions shall be based on, a ``Telecommunications 
Reporting Worksheet'' (as published by the Commission in the Federal 
Register). The worksheet shall be certified to by an officer of the 
contributor, and subject to verification by the Commission or the 
administrator at the discretion of the Commission. Contributors' 
statements in the worksheet shall be subject to the provisions of 
section 220 of the Communications Act of 1934, as amended. The fund 
administrator may bill contributors a separate assessment for 
reasonable administrative expenses and interest resulting from improper 
filing or overdue contributions. The Chief of the Consumer and 
Governmental Affairs Bureau may waive, reduce, modify or eliminate 
contributor reporting requirements that prove unnecessary and require 
additional reporting requirements that the Bureau deems necessary to 
the sound and efficient administration of the TRS Fund.
    (C) Registration Requirements for Providers of Non-Interconnected 
VoIP Service.
    (1). Applicability. A non-interconnected VoIP service provider that 
will provide interstate service shall file the registration information 
described in paragraph (c)(5)(iii)(C)(2) of this section in accordance 
with the procedures described in paragraphs (c)(5)(iii)(C)(3) and 
(c)(5)(iii)(C)(4) of this section. Any non-interconnected VoIP service 
provider already providing interstate service on the effective date of 
these rules shall submit the relevant portion of its FCC Form 499-A in 
accordance with paragraphs (c)(5)(iii)(C)(2) and (c)(5)(iii)(C)(3) of 
this section.
    (2). Information required for purposes of TRS Fund contributions. A 
non-interconnected VoIP service provider that is subject to the 
registration requirement pursuant to paragraph (c)(5)(iii)(C)(1) of 
this section shall provide the following information:
    (i) The provider's business name(s) and primary address;
    (ii) The names and business addresses of the provider's chief 
executive officer, chairman, and president, or, in the event that a 
provider does not have such executives, three similarly senior-level 
officials of the provider;
    (iii) The provider's regulatory contact and/or designated agent;
    (iv) All names that the provider has used in the past; and
    (v) The state(s) in which the provider provides such service.
    (3). Submission of registration. A provider that is subject to the 
registration requirement pursuant to paragraph (c)(5)(iii)(C)(1) of 
this section shall submit the information described in paragraph 
(c)(5)(iii)(C)(2) of this section in accordance with the Instructions 
to FCC Form 499-A. FCC Form 499-A must be submitted under oath and 
penalty of perjury.
    (4). Changes in information. A provider must notify the Commission 
of any changes to the information provided

[[Page 18497]]

pursuant to paragraph (c)(5)(iii)(C)(2) of this section within no more 
than one week of the change. Providers may satisfy this requirement by 
filing the relevant portion of FCC Form 499-A in accordance with the 
Instructions to such form.
* * * * *

[FR Doc. 2011-7798 Filed 4-1-11; 8:45 am]
BILLING CODE 6712-01-P