iowa communications alliance & iowa institute for cooperatives 2015 directors training...
TRANSCRIPT
IOWA COMMUNICATIONS ALLIANCE & IOWA INSTITUTE FOR COOPERATIVES
2015
DIRECTORS TRAINING CONFERENCE
Recent Regulatory Developments
Burnie E. Snoddy West Des Moines, IA
RULES OF RULES OF ENGAGEMENTENGAGEMENT
If you have a question ASK!!
Ask while it is on your mind and we are on that topic.
If I talk too much in acronyms or use terms that are not clear, SPEAK UP!
I would much rather talk with you than too you!!!
TELECOM INDUSTRY
THINGSTO KNOW
ABOUT FOR 2016
TOPICS OF THE DAY!TOPICS OF THE DAY! CAF ICC CARRIER ACCESS BILLING
◦DISPUTES COPPER RETIREMENTS LONG DISTANCE or EXPANDED
LOCAL CALLING LOCAL NUMBER PORTABILITY IUB – RULE CHANGES
TOPICS OF THE DAY!TOPICS OF THE DAY! TARIFF ISSUES SPECIAL ACCESS
◦DARK FIBER LEASE/SALE/CONTRACT IP TRANSITION
◦VOIP WHO IS CHECKING
◦USAC◦NECA
INTERCARRIER COMPENSATION
INTERSTATE OR FEDERAL ACCESS REFORM
◦THE RESULTS ARE NOW REALITY◦CURRENTLY WE ARE STILL ONLY TALKING
ABOUT TERMINATING INTRASTATE◦SOME ICC HAS BEEN MOVED TO USF◦SOME REVENUE HAVE BEEN MOVED
FROM USF TO END USER
UNIVERSAL SERVICE
INTERSTATE A-CAM OTHER MODELS RATE FLOOR NTCA PETITION
SWITCHEDBROADBAND
UNIVERSAL SERVICE
INTRASTATE
IOWA UTILITIES BOARD
NOTHING IN THE IMMEDIATE PLAN
NEW ETC REPORTING REQUIREMENTS◦ REPORTED FOR BOTH VOICE AND BROADBAND
(SEPARATELY) ON FORM 481◦ ETC REPORTING WAS FULLY IMPLEMENTED IN
2014 FIVE YEAR SERVICE QUALITY IMPROVEMENT PLAN -
§54.313(A)(1)
OUTAGE REPORTING - §54.313(A)(2)
UNFILLED REQUESTS FOR SERVICE - §54.313(A)(3)
COMPLAINTS PER 1,000 CONNECTIONS - §54.313(A)(4)
COMPLIANCE CERTIFICATION STATEMENTS - §54.313(A)(5),
(A)(6), AND (A)(10)
NETWORK PERFORMANCE TEST - §54.313(A)(11)
UNIVERSAL SERVICE
UNIVERSAL SERVICE
NEW ETC REPORTING REQUIREMENTS (cont)
CURRENT PRICE OFFERINGS - §54.313(A)(7)
COMPANY IDENTIFICATION - §54.313(A)(8) TRIBAL OUTREACH - §54.313(A)(9) ANNUAL FINANCIAL REPORT - §54.313 (F)(2) AREAS WITH NO TERRESTRIAL BACKHAUL - §54.313
(G) ADDITIONAL VOICE RATE DATA - §54.313 (H)
COMPLIANCE CERTIFICATION COMPLIANCE CERTIFICATION STATEMENTSSTATEMENTS
REQUIREMENTS
◦ Certify compliance with service quality standards and consumer protection rules
◦ Certify the ability to function in emergency situations Iowa: 199 IAC 22.6(5)
Maintain a minimum of two (2) hours of battery reserve Access to a mobile power unit with enough capacity to carry
the load which can be delivered on reasonably short notice and which can be readily connected
An auxiliary power unit shall be permanently installed in all toll centers and at all exchanges exceeding 4,000 access lines
COMPLIANCE CERTIFICATION COMPLIANCE CERTIFICATION STATEMENTSSTATEMENTS
Requirements (continued) Certification that the pricing of the company’s voice
services is no more than two (2) standard deviations above the national average urban rate for voice service.
Beginning July 1, 2014: Certification that the ETC is taking reasonable steps to provide broadband service at actual speeds of at least 4Mps/1Mbps, with latency suitable for real-time applications, including VoIP, and usage capacity that is reasonably comparable to comparable offerings in urban areas as determined in an annual survey, and that requests for such service are met within a reasonable amount of time.
CURRENT PRICE OFFERINGSCURRENT PRICE OFFERINGS
Requirements:
◦COMPANY’S PRICE OFFERINGS (RATE FLOOR) ETCS TO REPORT
VOICE PRICE OFFERINGS BROADBAND PRICE OFFERINGS
ETCS SHOULD REPORT RATES IN EFFECT AS OF JANUARY 1 OF THE REPORTING YEAR
NOW THERE ARE PROVISIONS FOR A MID-YEAR UPDATE
COMPANY IDENTIFICATIONCOMPANY IDENTIFICATION
Requirements
◦ REPORT THE RECIPIENT’S HOLDING COMPANY, OPERATING COMPANIES, AFFILIATES, AND ANY BRANDING (A “DBA” OR BRAND DESIGNATION) AS WELL AS UNIVERSAL SERVICE IDENTIFIER BY SUCH ENTITY BY STUDY AREA CODES.
◦ OWNERSHIP OF MORE THAN 10%
ANNUAL FINANCIAL REPORTANNUAL FINANCIAL REPORT
Requirement◦ Submission of a full and complete annual report of the
company’s financial condition and operations as of the preceding fiscal year, which is audited and certified by an independent CPA in a form satisfactory to the FCC, and accompanied by a report of such audit. The annual report shall include: Balance sheets Income statement with revenue itemized by sources, including non-
regulated revenue Statement of cash flows Necessary notes to clarify the financial statements
Requirement (Cont)
◦ IN LIEU OF THIS ANNUAL REPORT, ANY ETC THAT FILES ANNUAL FINANCIAL REPORTS WITH THE RUS, MAY INSTEAD FILE A COPY OF ITS REPORT FILED WITH THE RUS
◦ OTHERS MAY FILE A REPORT SIMILAR TO THE RUS OPERATING REPORT
ANNUAL FINANCIAL REPORTANNUAL FINANCIAL REPORT
RECORD RETENTIONRECORD RETENTION
ETCS AUTHORIZED TO RECEIVE UNIVERSAL SERVICE HIGH-COST SUPPORT ARE SUBJECT TO RANDOM COMPLIANCE AUDITS AND OTHER INVESTIGATIONS TO ENSURE COMPLIANCE
ALL ETCS SHALL RETAIN ALL RECORDS REQUIRED TO DEMONSTRATE TO AUDITORS THAT THE SUPPORT RECEIVED WAS CONSISTENT WITH THE UNIVERSAL HIGH-COST PROGRAM RULES FOR AT LEAST TEN (10) YEARS FROM THE RECEIPT OF FUNDING
Recommendations:
◦ THE ITEMS THAT WERE BEING MAINTAINED FOR SEVEN (7) YEARS SHOULD NOW BE MAINTAINED FOR TEN (10) YEARS.
◦ NO SPECIFIC GUIDANCE FROM FCC AS TO WHAT SHOULD BE MAINTAINED.
◦IF IN DOUBT, DON’T THROW IT OUT!
RECORD RETENTIONRECORD RETENTION
NON-COMPLIANCENON-COMPLIANCE
LATE FILINGS – LOSS OF HCLS AND CAF SUPPORT FOR EQUAL NUMBER OF QUARTERS FILING IS LATE
FAILURE TO FULFILL PUBLIC INTEREST OBLIGATIONS MAY ALSO RESULT IN LOST SUPPORT
EXAMPLES INCLUDE:◦ FAILURE TO MEET DEPLOYMENT MILESTONES◦ NOT PROVIDE BROADBAND AT THE SPEEDS REQUIRED BY
THE ORDER◦ PROVIDE SERVICE AT REASONABLY COMPARABLE RATES
ORIGINATING INTRASTATE ACCESS RATES CAF REDUCTION WHERE THERE IS
COMPETITIVE OVERLAP KEEP OR CUT THE NECA 11.25% ROR FINAL DECISIONS ON DATA ETC REPORTING USF CONTRIBUTION PROCEEDING OUTCOME
◦WHO SHOULD PAY AND HOW?◦WHAT SHOULD BE THE SIZE OF THE FUND?
ISSUES AWAITING RESOLUTIONISSUES AWAITING RESOLUTION
RECOMMENDATIONSRECOMMENDATIONS
BOARDS MAY WANT TO CONSIDER APPOINTING THE MANAGER AS AN OFFICER TO ALLOW EASIER CERTIFICATION OF REGULATORY FILINGS
BUDGETING FOR BOTH CAPITAL EXPENDITURES AND REGULAR OPERATIONS
DOING MORE WITH LESS – CONTAIN/REDUCE EXPENSES◦SHARE SERVICES WHERE POSSIBLE (E.G.
SWITCHING, EMPLOYEES)
RECOMMENDATIONSRECOMMENDATIONS
ASSESS CONDITION OF CURRENT FACILITIES ◦ AM I STILL ON COPPER OR HAVE I UPGRADED TO FIBER?◦ IMPROVE RELIABILITY AND LATENCY.◦ UNABLE TO CURRENTLY PROVIDE 10MBPS/1MBPS, CAN I
AFFORD TO INVEST? F◦ AILURE TO OBTAIN 4MBPS/1MBPS WILL COULD RESULT
IN THE REDUCTION OF SUPPORT.
PLAN FOR EVER INCREASING DEMAND FOR BANDWIDTH FROM CUSTOMERS AND THE POTENTIAL FOR THE FCC TO INCREASE THE REQUIREMENT FROM THE CURRENT 4MBPS/1MBPS
CARRIER ACCESS BILLING(CABS)
IXCS WITHHOLDING REVENUE
◦POINT OF INTERCONNECTION◦INTRAMTA ISSUE◦PVU VOIP◦USAGE OR VOLUME
NOTICES OF NETWORK CHANGES INVOLVING THE RETIREMENT OF COPPER◦ RETAIL◦ WHOLESALE (CARRIER)◦ CERTIFICATION TO FCC
DEEMED APPROVED AFTER 180 DAYS
◦ TIMING OF NOTICE 90 DAYS
◦ NOTICE OF PROPOSED RULE MAKING WILL ADD SIGNIFICANT ADDITION REQUIREMENTS
COPPER RETIREMENTSCOPPER RETIREMENTS
LONG DISTANCE
HOW SHOULD YOU PURCHASE LONG DISTANCE FOR RESALE WITH ACCESS ? WITHOUT ACCESS? HYBRID? VOIP OR TDM ? EXTENDED AREA CALLING (EAS)
STATEWIDE OPTIONAL LOCAL CALLING?
LONG DISTANCE
CALL TERMINATION ISSUES◦ LEAST COST ROUTING TO RURAL AREAS◦ CALL BLOCKING◦ POOR TRANSMISSION QUALITY◦ CALL COMPLETION◦ CONGRESS IS INVOLVED◦ FCC ISSUED ORDER, BUT NO ENFORCEMENT◦ NARUC INVOLVED◦ IOWA UTILITIES BOARD DOCKETS
WHILE LNP HAS BEEN WITH US FOR A WHILE WE MAY SEE SOME CHANGES IN THE COMING YEAR
ICONNECTIV IS SCHEDULED TO REPLACE NEUSTAR AS THE LNP PROGRAM MANAGER
THE FCC IS WORKING TO IMPLEMENT THE TRANSITION, BUT IT MAY HAVE SOME ROUGH TRANSITIONS AND COMPANIES WILL NEED BE AWARE OF THE PROCESS TO PROTECT CUSTOMERS
LOCAL NUMBER PORTABILITYLOCAL NUMBER PORTABILITY
IOWA UTILITIES BOARDIOWA UTILITIES BOARD
POSSIBLE RULEMAKINGS IN 2016:
◦ ETC REPORTING TO REFLECT THE CHANGES IN THE FCC’S TRANSFORMATION ORDER (CHAPTER 39 HAS BEEN ISSUED)
◦ QUALITY OF SERVICE RULES◦ REMOVAL OF REFERENCES TO RATE REGULATION◦ SLAMMING AND CRAMMING◦ CUSTOMER RELATIONS AND BILLING AND ACCESS TO
PRICING SHEETS◦ DISCONTINUANCE OF SERVICE◦ CYBER SECURITY
TARIFF ISSUES
ICA ACCESS TARIFF #1◦ INTRASTATE TERMINATING IS NOW EQUAL TO
INTERSTATE RATES AND WILL FOLLOW THE INTERSTATE PHASE DOWN OF RATES
◦ INTRASTATE TERMINATING VOIP IS CONSIDERED INTERSTATE, BUT REALLY IS A MUTE POINT, EXCEPT FOR NECA REPORTING PURPOSES
◦ INTRASTATE ORIGINATING REMAINS UNCHANGED FOR THE TIME BEING MOST COMPANIES FOLLOW THE NECA
INTERSTATE ORIGINATING RATES
MODEL LOCAL TARIFF MODEL LOCAL TARIFF
WORK IS IN PROGRESS TO CLEAN UP THE CATALOG MODEL TO FIT WITH NEW RULES
◦MOST COMPANIES HAVE TRANSITIONED TO A PRICE CATALOG MODEL
THE TRANSITION TO AN IP OR BROADBAND
NETWORK?
BROADBANDBROADBAND
HIGH BANDWIDTH SPECIAL ACCESSHIGH BANDWIDTH SPECIAL ACCESS
THE FUTUREBROADBAND
ETHERNETIP TRANSITION/VOIPDARK FIBERCAPACITY!!!!
WIRELESS DEPLOYMENT OF 3G OR 4G NETWORK◦ WILL REQUIRE MORE BANDWIDTH TO CELL
TOWERS◦ WIRELINE COMPANIES COMPETITIVE PRICING◦ REVENUE OPPORTUNITY FOR RURAL COMPANIES
THIS DEMAND WILL GROW USING ETHERNET TECHNOLOGY NOW DS1(1.5mb) INTERIM (MULTIPLE DS1s OR DS3s) FUTURE (10MB TO 1+GB OR MORE) DARK FIBER???
WIRELESS BACKHAULWIRELESS BACKHAUL
USAC AUDITSUSAC IS CONDUCTING AUDITS
◦MOST IN THIS YEAR ARE LIFELINE A FEW CONTRIBUTOR AUDITS A FEW HIGH COST
◦CONDUCTED BY CONTRACT STAFFING MORE INFORMED AND PROFESIONAL STRICT INTERPRETATION OF RULES
NECA REVIEWSNECA REVIEWS
NECA REVIEWS ARE FOCUSING ON SPECIAL ACCESS
◦ IT IS THE ONLY RATE OF RETURN SEGMENT LEFT
◦ SPECIAL ACCESS HAS LONG BEEN NEGLECTED FOR ACCURATE BILLING & REPORTING
◦ NECA IS STRESSING TRAINING FOR ASR AND BILLING
CONGRESSCONGRESS
HOUSE PASSES FCC REFORM BILL◦ THE HOUSE ENERGY AND COMMERCE COMMITTEE ISSUED
A PRESS RELEASE ON NOVEMBER 16, 2015, ANNOUNCING THE HOUSE APPROVED LEGISLATION TO INCREASE TRANSPARENCY, EFFICIENCY AND ACCOUNTABILITY AT THE FCC. THE BILL REQUIRES THE FCC TO MAKE CERTAIN CHANGES TO ITS RULES WITHIN ONE YEAR, PUBLISH CERTAIN DOCUMENTS ON THE FCC WEBSITE, CREATE A SEARCHABLE ONLINE DATABASE FOR CONSUMER COMPLAINTS, AND GRANTS A TEMPORARY WAIVER OF THE ANTI-DEFICIENCY ACT UNTIL THE END OF 2020 FOR THE FCC’S UNIVERSAL SERVICE FUND.
◦ NOT LIKELY TO BECOME LAW
IS THERE A TOPIC I DID NOT COVER YOU HAVE QUESTIONS
ABOUT?
NOW IS YOUR CHANCE TO ADD YOUR TOPIC OF CONCERN!
DID I MISS SOMETHING?DID I MISS SOMETHING?
FINAL THOUGHTS FINAL THOUGHTS Keep your eye on regulatory changes that may affect
you companies revenue and financial viability
Get involved in the legislative process, this is how large companies get things they want.
Stay in touch with your legislators, both Federal and Iowa
Think about your potential to influence from other perspectives
Thank You!BURNIE E. SNODDY
Senior Telecommunications Consultant
Kiesling Associates LLPMain number: 515-223-0159Direct Line: 515-221-4643