[Federal Register Volume 77, Number 239 (Wednesday, December 12, 2012)]
[Notices]
[Pages 74010-74013]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-29963]


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FEDERAL COMMUNICATIONS COMMISSION

[WC Docket No. 06-122; DA 12-1872]


Proposed Changes to FCC Form 499-A, FCC Form 499-Q, and 
Accompanying Instructions

AGENCY: Federal Communications Commission.

ACTION: Notice; solicitation of comments.

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SUMMARY: In this document, the Wireline Competition Bureau (Bureau) 
seeks comment on proposed revisions to the annual Telecommunications 
Reporting Worksheet, FCC Form 499-A (Form 499-A) and accompanying 
instructions (Form 499-A Instructions) to be used in 2013 to report 
2012 revenues, and the quarterly Telecommunications Reporting 
Worksheet, FCC Form 499-Q (Form 499-Q) and accompanying instructions 
(Form 499-Q Instructions) to be used in 2013 to report projected 
collected revenues on a quarterly basis.

DATES: Comments are due on or before January 11, 2013.

ADDRESSES: Interested parties may file comments on or before January 
11,

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2013. All pleadings are to reference WC Docket No. 06-122. Comments may 
be filed using the Commission's Electronic Comment Filing System (ECFS) 
or by filing paper copies, by any of the following methods:
     Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the ECFS: http://fjallfoss.fcc.gov/ecfs2/.
     Paper Filers: Parties who choose to file by paper must 
file an original and four copies of each filing.
     People with Disabilities: To request materials in 
accessible formats for people with disabilities (Braille, large print, 
electronic files, audio format), send an email to [email protected] or 
call the Consumer & Governmental Affairs Bureau at (202) 418-0530 
(voice), (202) 418-0432 (tty).

FOR FURTHER INFORMATION CONTACT: Ernesto Beckford, Wireline Competition 
Bureau at (202) 418-7400 or TTY (202) 418-0484.
    For detailed instructions for submitting comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

SUPPLEMENTARY INFORMATION: This is a synopsis of the Wireline 
Competition Bureau's Public Notice in WC Docket No. 06-122; DA 12-1872, 
released November 23, 2012. The complete text of this document is 
available for inspection and copying during normal business hours in 
the FCC Reference Information Center, Portals II, 445 12th Street SW., 
Room CY-A257, Washington, DC 20554. The document may also be purchased 
from the Commission's duplicating contractor, Best Copy and Printing, 
Inc., 445 12th Street SW., Room CY-B402, Washington, DC 20554, 
telephone (800) 378-3160 or (202) 863-2893, facsimile (202) 863-2898, 
or via the Internet at http://www.bcpiweb.com.

I. Synopsis of Public Notice

    1. In order to promote clarity, transparency and predictability, 
the Wireline Competition Bureau (Bureau) seeks comment on proposed 
revisions to (1) the annual Telecommunications Reporting Worksheet, FCC 
Form 499-A (Form 499-A) and accompanying instructions (Form 499-A 
Instructions) to be used in 2013 to report 2012 revenues, and (2) the 
quarterly Telecommunications Reporting Worksheet, FCC Form 499-Q (Form 
499-Q) and accompanying instructions (Form 499-Q Instructions) to be 
used in 2013 to report projected collected revenues on a quarterly 
basis. The revisions to the forms and instructions are attached to the 
Public Notice in redline format, showing proposed changes from the 
forms and instructions currently in effect. The redlines may be viewed 
on the Commission's Web site, as follows: Form 499-A, available at 
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-12-1872A2.pdf; 
Form 499-A Instructions, available at http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-12-1872A3.pdf; Form 499-Q, available at http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-12-1872A4.pdf; and Form 
499-Q Instructions available at http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-12-1872A5.pdf.

II. Discussion

    The proposed revisions include the following modifications:
    2. Stylistic Changes. In several instances, wording in the 
instructions was revised for clarification purposes, without changing 
the substance.
    3. Date Changes. Dates were updated throughout. References to 
``2012'' were changed to ``2013,'' and references to ``2011'' were 
changed to ``2012.''
    4. Web Pages. Hyperlinks were revised as appropriate throughout the 
Form 499-A Instructions and the Form 499-Q Instructions.
    5. Estimation Factor. Appendix A of the Form 499-A Instructions (at 
Line 10) and Figure 1 of the Form 499-Q Instructions (at Line 16) 
contain the estimation factor to be used by filers to determine de 
minimis status. The estimation factor for 2013 is 0.162.
    6. Charges Allowed by USF/ICC Transformation Order. In the USF/ICC 
Transformation Order (26 FCC Rcd 17663), the Commission allowed 
incumbent local exchange carriers (LECs) to charge an access recovery 
charge (ARC) on wireline telephone service to partially offset 
intercarrier compensation revenue declines resulting from the 
transition of certain switched access rates adopted as part of the 
comprehensive intercarrier compensation reform. The Form 499-A 
Instructions were revised at page 17 (Line 405) to list the ARC as a 
type of charge to end users (specified in access tariffs) reportable 
under Line 405. Similarly, the USF/ICC Transformation Order allows per-
minute charges for originating or terminating voice over Internet 
Protocol (VoIP)/public switched telephone traffic. The Form 499-A 
Instructions were revised at page 16 (Line 304) to list such charges as 
a type of per-minute originating and terminating charge reportable on 
Line 304.
    7. Filing Schedule. Table 1 of the Form 499-A Instructions and 
Figure 2 of the Form 499-Q Instructions were revised to clarify the 
filing addresses for Form 499-A, Form 499-Q, Traffic Studies, and the 
Consolidated Filer Certification. Form 499-Q (Line 113) was revised to 
allow filers to check the applicable quarter for which the form is 
being filed.
    8. Mergers. Pages 9 and 14 of the Form 499-A Instructions were 
revised to clarify the procedures for successor companies to report the 
revenues of acquired entities.
    9. Holding Company and Affiliates. Form 499-A (Line 106.1), Form 
499-Q (Line 105), page 11 of the Form 499-A Instructions, and page 11 
of the Form 499-Q Instructions were revised to include a checkbox for 
filers to indicate whether they have affiliates. Affiliates should list 
the same holding company on Form 499-A and Form 499-Q. Form 499-Q (Line 
105.1) was revised to include the Internal Revenue Service (IRS) 
employer identification number (EIN) for the filer's holding company.
    10. Definition of Affiliate. The definition of the term affiliate 
is added on pages 10-11 of the Form 499-A Instructions and page 10 of 
the Form 499-Q Instructions. This definition is the same as the 
definition contained in Appendix A of the Form 499-A Instructions and 
Figure 1 of the Form 499-Q Instructions.
    11. Ink Signature Requirement. Page 19 of the Form 499-A 
Instructions and page 19 of the Form 499-Q Instructions were revised to 
clarify that an original ink signature is required from an officer when 
he or she first files a form. Subsequent forms signed by the same 
officer may be signed electronically.
    12. Subscriber Line Charges and Exchange Access Service. In order 
to better reflect Commission precedent and rules, we are deleting the 
following language from the discussion of Line 404 in the Form 499-A 
Instructions: ``Note that federal subscriber line charges typically 
represent the interstate portion of fixed local exchange service; these 
amounts are separate from toll revenues and correspond to the revenues 
received by incumbent telephone companies to recover part of the cost 
of networks that allow customers to originate and terminate interstate 
calls. Filers without subscriber line charge revenue must identify the 
interstate portion of fixed local exchange service revenues in column 
(d) of the appropriate line 404.1.'' We consolidated on page 17 of the 
Form 499-A Instructions the description of what federal subscriber line 
charges (SLCs) are and added language clarifying that carriers that 
elect to charge end users for the

[[Page 74012]]

provision of interstate exchange access service through a separately 
stated charge (e.g., a SLC) should report such revenues on Line 405. 
Conforming changes were made at page 14 of the Form 499-Q Instructions.
    13. Special Access on Common Carrier Basis. Page 18 of the Form 
499-A Instructions were revised to remind filers that they should 
report, on Line 406, revenues derived from the sale of special access 
on a common carrier basis to providers of retail broadband Internet 
access service.
    14. Definition of ``Toll Services'' for Wireless Providers. Pages 
19-20 of the Form 499-A Instructions were revised to include a cross 
reference to Commission orders defining ``toll services'' for wireless 
providers.
    15. Carrier's Carrier Revenues. Pages 22-23 of the Form 499-A 
Instructions were revised to provide additional examples of 
intercarrier compensation that should be reported in Block 3 (carrier's 
carrier revenues) and not in Block 4 (end user revenues).
    16. Traffic Studies. Page 28 of the Form 499-A Instructions and 
page 16 of the Form 499-Q Instructions were revised to include format 
headings to be used when filing traffic studies, to assist in 
administrative processing. These headings are intended to help identify 
each filer submitting traffic studies in order to properly match the 
traffic study with such filer's Form 499-A and Form 499-Q filings.
    17. Consistency in Traffic Study or Safe Harbor Elections. Page 27 
of the Form 499-A Instructions and pages 15-17 of the Form 499-Q 
Instructions were revised to clarify the requirement that the same 
election made by a filer on its Form 499-Q filings to use either a safe 
harbor or traffic studies to project revenues for a particular quarter 
must be used on the filer's Form 499-A for reporting historical 
revenues for that particular quarter. Form 499-Q (Line 114) was revised 
to include a check box when filers use safe harbors for reporting 
revenue allocations.
    18. Percentage of Revenues Billed Per Region. Lines 503 through 510 
of Form 499-A currently require filers to report the percentage of 
telecommunications revenues billed by LNPA region. Page 30 of the Form 
499-A Instructions was revised to clarify that filers may use customer 
billing addresses to calculate or estimate this percentage.
    19. ``Reseller'' Sample Certification Language. Consistent with the 
recently adopted 2012 Wholesaler-Reseller Clarification Order (FCC 12-
134), pages 22-25 of the Form 499-A Instructions and pages 11-12 of the 
Form 499-Q Instructions were revised to clarify that providers may rely 
on reseller certificates that are consistent with the sample language 
contained in the 2012 FCC Forms 499 instructions, and included herein 
for illustrative purposes, through December 31, 2013. The Instructions 
were also revised to delete the suggested procedure to check the 
Commission's Web site to ascertain whether a carrier customer is a 
contributor to the USF, because such action, by itself, is insufficient 
to satisfy the reasonable expectation standard. Pages 24-25 of the Form 
499-A Instructions were revised to include new sample certification 
language that providers may utilize to satisfy the reasonable 
expectation standard, pending adoption of any rule changes in the 
pending universal service contribution reform rulemaking.
    20. Deleted Language.
     Rounding Percentages. Page 10 of the Form 499-A 
Instructions was revised to delete instructions requiring revenues to 
be rounded to the nearest whole percent. Revenues should not be rounded 
to whole numbers. This is consistent with the safe harbors for 
interstate/intrastate revenues, which are not whole numbers.
     Revenues from Affiliates. In order to better reflect 
Commission precedent and rules, page 14 of the Form 499-A Instructions 
was revised to delete the following language: ``Gross billed revenues 
also do not include revenues (imputed or otherwise) for services 
provided to the filer itself or from one wholly owned affiliate to 
another unless: (1) the filer is required to record such revenues for 
some other federal or state regulatory purpose; or (2) the filer is 
providing service to an affiliate for resale and the affiliate is not a 
direct universal service contributor.'' Similar language was deleted 
from page 13 of the Form 499-Q Instructions.
    21. Paperwork Reduction Act of 1995. This document does not contain 
new or modified information collection(s) subject to the Paperwork 
Reduction Act of 1995 (PRA), Public Law 104-13. In addition, therefore, 
it does not contain any new or modified information burden for small 
business concerns with fewer than 25 employees, pursuant to the Small 
Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 
3506(c)(4).
    22. Pursuant to Sec. Sec.  1.415 and 1.419 of the Commission's 
rules, 47 CFR 1.415, 1.419, interested parties may file comments on or 
before the dates indicated on the first page of this document. All 
pleadings are to reference WC Docket No. 06-122. Comments may be filed 
using: (1) the Commission's Electronic Comment Filing System (ECFS), or 
(2) by filing paper copies. All filings must be addressed to the 
Commission's Secretary, Office of the Secretary, Federal Communications 
Commission.
     Electronic Filers: Comments may be filed electronically 
using the Internet by accessing the ECFS: http://apps.fcc.gov/ecfs/. 
Filers should follow the instructions provided on the Web site for 
submitting comments.
     Paper Filers: Parties who choose to file by paper must 
file an original and one copy of each filing. 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. The filing hours 
are 8:00 a.m. to 7:00 p.m. All hand deliveries must be held together 
with rubber bands or fasteners. Any envelopes must be disposed of 
before entering the building.
     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.
     People with Disabilities: To request materials in 
accessible formats for people with disabilities (Braille, large print, 
electronic files, audio format), send an email to [email protected] or 
call the Consumer & Governmental Affairs Bureau at (202) 418-0530 
(voice), (202) 418-0432
    Additional copies. One copy of each filing must be sent to each of 
the following:
     The Commission's duplicating contractor, Best Copy and 
Printing, Inc., 445 12th Street SW., Room CY-B402, Washington, DC 
20554, www.bcpiweb.com; phone: (202) 488-5300 fax: (202) 488-5563;
     Ernesto Beckford, Telecommunications Access Policy 
Division, Wireline Competition Bureau, 445 12th Street SW., Room 5-
A317, Washington, DC 20554; email: [email protected] and
     Charles Tyler, Telecommunications Access Policy Division, 
Wireline Competition Bureau, 445 12th Street SW., Room 5-A452, 
Washington, DC 20554; email: [email protected].

[[Page 74013]]

    23. Filings and comments are also available for public inspection 
and copying 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: (202) 
488-5300, fax: (202) 488-5563, or via email www.bcpiweb.com.
    24. The proceeding this Notice initiates shall be treated as a 
``permit-but-disclose'' proceeding in accordance with the Commission's 
ex parte rules. Persons making ex parte presentations must file a copy 
of any written presentation or a memorandum summarizing any oral 
presentation within two business days after the presentation (unless a 
different deadline applicable to the Sunshine period applies). Persons 
making oral ex parte presentations are reminded that memoranda 
summarizing the presentation must (1) list all persons attending or 
otherwise participating in the meeting at which the ex parte 
presentation was made, and (2) summarize all data presented and 
arguments made during the presentation. If the presentation consisted 
in whole or in part of the presentation of data or arguments already 
reflected in the presenter's written comments, memoranda or other 
filings in the proceeding, the presenter may provide citations to such 
data or arguments in his or her prior comments, memoranda, or other 
filings (specifying the relevant page and/or paragraph numbers where 
such data or arguments can be found) in lieu of summarizing them in the 
memorandum. Documents shown or given to Commission staff during ex 
parte meetings are deemed to be written ex parte presentations and must 
be filed consistent with rule 1.1206(b). In proceedings governed by 
rule 1.49(f) or for which the Commission has made available a method of 
electronic filing, written ex parte presentations and memoranda 
summarizing oral ex parte presentations, and all attachments thereto, 
must be filed through the electronic comment filing system available 
for that proceeding, and must be filed in their native format (e.g., 
.doc, .xml, .ppt, searchable .pdf). Participants in this proceeding 
should familiarize themselves with the Commission's ex parte rules.

Federal Communications Commission.
Trent B. Harkrader,
Division Chief, Telecommunications Access Policy Division, Wireline 
Competition Bureau.
[FR Doc. 2012-29963 Filed 12-11-12; 8:45 am]
BILLING CODE 6712-01-P