TMI Regulatory Digest May 2015

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1 TMI Regulatory Digest May 2015 In this Issue Adopted Regulatory Changes:... 1 FCC Issues Enforcement Advisory On Protecting Consumer Privacy Under Its Open Internet Rules [VoIP, Wireless]... 1 California Expands Scope Of Call Completion Proceeding [LEC, IXC]... 2 Indiana Eliminates CenturyLink s OSS Performance Requirements... 2 Kentucky To Further Deregulate ILEC Services [LEC, VoIP, Wireless]... 2 Minnesota Revises Rural Call Completion Reporting Requirements, Again [LEC, IXC, VoIP, OSP, Debit Card, Wireless, Inmate]... 2 Oklahoma Adopts Part 55 Rule Changes... 2 Oklahoma Adopts Part 59 Rule Changes [LEC, IXC, OSP, Debit Card, Wireless]... 2 Texas Releases Bill Inserts For The 2015 Hurricane Season... 3 Access Reform Filings:... 3 Colorado Calls For Access Tariff Filings... 3 Indiana Provides Instructions For 2015 Access Tariff Filings... 3 Iowa Establishes Filing Requirements For 2015 Tariff Revisions Implementing ICC/USF Reform... 3 Maryland Calls For Access Tariff Revisions... 3 Massachusetts Announces Access Tariff Filing Procedures... 3 Michigan Access Tariff Revisions Due... 3 Telecom Pending Changes:... 4 FCC Seeks Comment On Proposed TRS Contribution Factor [LEC, IXC, VoIP, OSP, CoCoT, Debit Card, Wireless, Inmate]... 4 FCC Seeks Comment On Proposed Regulatory Fees For 2015 [LEC, IXC, VoIP, OSP, CoCoT, Debit Card, Inmate]... 4 FCC Seeks Comment On Petition Regarding Section 271 UNEs... 4 Colorado Proposes New Emergency Service Rules [LEC, IXC, VoIP, OSP, CoCoT, Debit Card, Wireless, Inmate]... 4 Washington Considers Use Of Credit Cards To Pay For Services [LEC, IXC, Wireless]... 4 Funds, Fees, and Surcharges:... 4 Arkansas Increases High Cost Fund Assessment Rate [LEC, IXC, VoIP, OSP, CoCoT, Debit Card, Wireless, Inmate]... 4 Illinois Decreases ITAC Line Charge [LEC, VoIP]. 4 Indiana Increases 911 Fees [LEC, VoIP, Wireless]... 5 Texas Announces Final Municipal Access Line Fees To Be Effective July 1, 2015 [LEC,VoIP]. 5 Wyoming Increases USF Assessment [LEC, IXC, OSP, CoCoT, Debit Card, Wireless, Inmate]... 5 Follow-Up:... 5 FCC Denies Petitions For Stay of Open Internet/Net Neutrality Order [LEC, IXC, VoIP, Wireless]... 5 NANPA Releases Implementation Schedule For 463 NPA Overlay [LEC, IXC, OSP, CoCoT, Debit Card, Wireless, Inmate]... 5 For more details on any of these issues, please contact Frances Martens at fmartens@tminc.com or Adopted Regulatory Changes: FCC Issues Enforcement Advisory On Protecting Consumer Privacy Under Its Open Internet Rules [VoIP, Wireless] The FCC released an Enforcement Advisory aimed at providing broadband Internet access service (BIAS) providers with guidance as to how the Enforcement Bureau will enforce 222 of the Communications Act during the time between the effective date of the Open Internet rules and any subsequent FCC action adopting rules. The Advisory instructs BIAS providers to take reasonable good faith steps to protect consumer privacy. Providers are encouraged to seek informal and formal guidance from the Bureau. The Advisory states that while no provider is required to consult with the Enforcement Bureau, the existence of such a

2 TMI Regulatory Digest Page 2 May 2015 request for guidance will tend to show that the broadband provider is acting in good faith. California Expands Scope Of Call Completion Proceeding [LEC, IXC] The California Public Utilities Commission has amended the original scope of the call completion proceeding to incorporate public safety issues related to 911 calls. The expanded scope will include a review of 911 call completion and access issues, including, but not limited to, loss of dial-tone for reasons other than service cancellation. Intrado Communications, Inc., Comcast Phone of California, Time Warner Information Services Inc., and Charter Fiberlink were added as Respondents. All respondents/parties to the proceeding are required to answer the questions presented in Attachment A to the ruling. Responses are due no later than June 5, 2015; replies are due June 20, Indiana Eliminates CenturyLink s OSS Performance Requirements The Indiana Utility Regulatory Commission granted CenturyLink s petition asking it to forbear from enforcing the Operating Support System (OSS) performance requirements that were first adopted in The forbearance is effective as of May 20, The Commission emphasized that its order should not be considered to bar any CLEC or other requesting telecommunications carrier from seeking access to company specific OSS performance data in the context of future interconnection agreement negotiations. The Commission retains authority to investigate and OSS-related disputes. Kentucky To Further Deregulate ILEC Services [LEC, VoIP, Wireless] A new law in Kentucky will deregulate the retail services of AT&T, Windstream, and Cincinnati Bell in exchanges with 15,000 or more housing units. The law will relieve those carriers of the obligation to provide basic local exchange service (BLES) and file BLES tariffs in such exchanges. The law also relieves them of the obligation to provide BLES for new builds in exchanges with less than 15,000 housing units. The PSC retains jurisdiction over wholesale issues, carrier to carrier issues, and anticompetitive practices in all exchanges and will be required to resolve inter-carrier complaints within 180 days. The new law becomes effective June 25, Minnesota Revises Rural Call Completion Reporting Requirements, Again [LEC, IXC, VoIP, OSP, Debit Card, Wireless, Inmate] The Minnesota Public Utilities Commission revised the standard IXCs must use to report call completion complaints. Instead of reporting complaints about calls terminating to rural operating company numbers (OCN), carriers must report all call completion complaints except those concerning calls intended to terminate in area codes 612, 651, 763, and 952. There are no changes to the other reporting requirements, including the requirement to file reports on a quarterly basis, 30 days following the completion of the quarter. Oklahoma Adopts Part 55 Rule Changes The Oklahoma Corporation Commission adopted revisions to its Chapter 55 (Telecommunications Services) rules. The final rules include changes to rules concerning certification, tariff filings, and promotions. Most of the changes are to the rules governing Eligible Telecommunications Carriers (ETCs). ETC rules were consolidated in Subchapter 23, and the rules that were previously applicable only to wireless ETCs are now applicable to all ETCs. Among other things, the rules address ETC certification, Lifeline customer eligibility determination, record retention, tariffs, and reporting. The rules require approval by the legislature and the Governor before they can become effective. Once approval is obtained, they will be effective 10 days after publication in the Oklahoma Register. Oklahoma Adopts Part 59 Rule Changes [LEC, IXC, OSP, Debit Card, Wireless] The Oklahoma Corporation Commission adopted revisions to its Chapter 59 (Oklahoma Universal Service) rules. The Commission declined to adopt its proposed definition of retail-billed Oklahoma intrastate revenues. The proposed definition would have included revenues received from federal universal support mechanisms, including Lifeline service, and prepaid wireless revenues as retail revenues. It did adopt proposed changes to rules concerning disputes of contribution amounts and how over- or under-recovery of OUSF contributions from customers should be handled. The rules require approval by the legislature and the Governor before they can become effective. Once approval is obtained, they will be effective 10 days after publication in the Oklahoma Register.

3 TMI Regulatory Digest Page 3 May 2015 Texas Releases Bill Inserts For The 2015 Hurricane Season The Public Utilities Commission of Texas released bill inserts for utilities to use during the 2015 hurricane season. The bill inserts must begin in June and end in November. They are intended for residential customers who live in the five hurricane evacuation zones. Access Reform Filings: Colorado Calls For Access Tariff Filings The Colorado Public Utilities Commission requires all LECs and Competitive Access Providers to file updated switched access tariffs that reflect the fourth phase of the FCC s ICC transition of intrastate access rates. No later than May 15, 2015, ILECs must file tariffs and workpapers (using a separate Advice Letter) with an effective date of July 1, CLECs that benchmark their interstate tariff rates to the tariffed rates of the LEC serving the same geographic area (the benchmarking rule), will be allowed an extra 15 days from the effective date of the tariff to which a CLEC is benchmarking to make their filing. Indiana Provides Instructions For 2015 Access Tariff Filings The Indiana Utility Regulatory Commission issued instructions for filing the July 1, 2015, access tariff revisions required by the FCC s USF/ICC Order. Under FCC rules, CLECs that benchmark their switched access rates to the competing ILEC rates must revise their rates within 15 days of the effective date of the ILEC revised rates. Instant Mirroring Filings will have an effective date that is one business day later than the effective date of the applicable access rates, charges, terms, and/or conditions. Iowa Establishes Filing Requirements For 2015 Tariff Revisions Implementing ICC/USF Reform The Iowa Utilities Board establishes deadlines for filing tariffs to implement the next phase of the FCC s ICC/USF reform. Filings must be made by June 1, All LECs must make some type of filing even if they are not filing tariff revisions or do not have an access tariff on file because they are a reseller. Tariff revisions must be accompanied by support documentation. Carriers may request confidential treatment of their filing. Maryland Calls For Access Tariff Revisions The Maryland Public Service Commission set the filing date for tariff revisions to implement the July 2015 switched access rate reductions required by the FCC s ICC/USF reform. The filings must be made no later than June 1, 2015, with a proposed effective date of July 1, Each filing must include a copy of the relevant interstate tariff page that indicates the carrier s current interstate access rate. The PSC revised the filing requirement in order to account for the FCC benchmark rule provision which allows CLECs that benchmark their rates to underlying ILECs rates additional time to file their tariff revisions, the filing due date has been extended. Therefore, any CLEC benchmarking against Verizon must file its revised intrastate access tariff with the PSC by June 29, 2015, and may elect to make its tariff effective coincident with its interstate access filing with the FCC but not later than July 31, All other aspects of the Commission s May 5th Notice remain in effect. Massachusetts Announces Access Tariff Filing Procedures The Massachusetts Department of Telecommunications & Cable issued a Notice with details for 2015 ICC access rate reduction tariff filings. LEC filings are due to the Department by the same day as the carrier s interstate switched access filings are filed with the FCC. ILEC filings should have an effective date of July 1, CLEC filings should be filed with no later than one calendar day prior to the effective date. The Department will not accept letters in lieu of tariff revisions where carriers with access tariffs claim to have no access traffic. If a carrier no longer offers the tariffed services, then the carrier should revise its Statement of Business Operations and tariffs on file with the Department accordingly. Michigan Access Tariff Revisions Due The Michigan Public Service Commission issued a reminder of tariff filings required by the FCC s (2011) ICC/USF Reform Order. The PSC advises that CLECs should use the same effective date for their intrastate tariff changes as they do for their interstate tariff changes pursuant to the FCC s benchmarking rule. Any required tariff filings must include the revised tariff page(s), cover sheet, and the additional required supporting documentation. Carriers not required to make access tariff revisions

4 TMI Regulatory Digest Page 4 May 2015 (i.e., already in compliance) should a letter to the PSC to that effect. Telecom Pending Changes: FCC Seeks Comment On Proposed TRS Contribution Factor [LEC, IXC, VoIP, OSP, CoCoT, Debit Card, Wireless, Inmate] The FCC seeks comment on the proposed TRS contribution factor for the period July 1, 2015, through June 30, The proposed factor is This would be a substantial increase over the factor of Comments on the proposed factor and associated funding requirement are due June 4, 2015; reply comments are due June 11, FCC Seeks Comment On Proposed Regulatory Fees For 2015 [LEC, IXC, VoIP, OSP, CoCoT, Debit Card, Inmate] The FCC is seeking comment on the proposed fiscal year (FY) 2015 regulatory fees. For interstate telephone service providers (ITSPs), including CLECs, IXCs, IXC resellers, debit card providers, OSPs, inmate service providers, pay telephone providers, interconnected VoIP providers, and audio bridging service providers, the proposed FY 2015 fee factor is The FY 2014 factor was The reduction is largely due to the FCC s decision to assess a new fee on toll free numbers starting in The proposed toll free number fee is $0.12 per year per toll free number, to be assessed on RespOrgs. Comments on the proposed fees and other proposed changes are due June 22, 2015; reply comments are due July 6, FCC Seeks Comment On Petition Regarding Section 271 UNEs The FCC is seeking comment on a Petition For Declaratory Ruling regarding the Bell Operating Companies (BOC) obligations when CLECs purchase UNEs under 271 of the Communications Act (the Competitive Checklist). The Petition asks the FCC to rule that the BOCs have the following obligations: (1) not to separate UNEs provisioned pursuant to 271(c)(2)(B)(iv)-(vi) of the Communications Act (Act); (2) to combine such UNEs; and (3) to commingle such UNEs with other wholesale services. Comments are due June 15, 2015; reply comments are due June 30, Colorado Proposes New Emergency Service Rules [LEC, IXC, VoIP, OSP, CoCoT, Debit Card, Wireless, Inmate] The Colorado Public Utilities Commission has proposed rules regarding basic emergency service that will entirely replace the current temporary ALI Rules. The PUC s actions are intended to encourage and promote a statewide transition to internet protocol (IP) based Next Generation (NG9-1- 1), without compromising reliability, resiliency, affordability, and outage reporting. Initial comments on the proposed rules are due no later than June 5, 2015, and reply comments are due no later than June 19, A hearing is scheduled for June 26, Washington Considers Use Of Credit Cards To Pay For Services [LEC, IXC, Wireless] The Washington Utilities and Transportation Commission is seeking written comments on current utility practices regarding credit card payments by customers. Comments are due by May 15, A workshop has been scheduled for June 9, Funds, Fees, and Surcharges: Arkansas Increases High Cost Fund Assessment Rate [LEC, IXC, VoIP, OSP, CoCoT, Debit Card, Wireless, Inmate] The Administrator of the Arkansas High Cost Fund (AHCF) has announced a new AHCF assessment rate. Effective July 1, 2015, the rate will be increased from 5.0% to 5.5%. The rate increase is due to a decrease in monthly reported revenues. All telecommunications carriers, wireless providers, and interconnected VoIP providers with intrastate operations in the State of Arkansas are subject to the assessment. Providers may recover the amount of their contribution from intrastate retail customers. Illinois Decreases ITAC Line Charge [LEC, VoIP] The Illinois Commerce Commission decreases the Illinois Telecommunications Access Corporation (ITAC) line charge rates. All local exchange carriers must file revised tariffs reflecting the new rates. Tariff filings must be made by May 13, 2015, to become effective June 1, LECs and fixed or non-nomadic VoIP service providers must reflect the new rates on bills rendered on or after June 1, 2015, or at the beginning of the first billing cycle after June 1, 2015.

5 TMI Regulatory Digest Page 5 May 2015 Indiana Increases 911 Fees [LEC, VoIP, Wireless] A new law in Indiana will increase both the Statewide 911 Fee and the Enhanced Prepaid Wireless Charge. Effective July 1, 2015, both rates will increase to $1.00. The Statewide 911 Fee is currently $0.90 per user with a primary place of use in Indiana; the Enhanced Prepaid Wireless Charge is $0.50 per retail transaction. The new law also revises the way Eligible Telecommunications Carriers (ETCs) calculate and remit both fees and limits the Statewide 911 Board s (Board) ability to increase both fees in the future. Texas Announces Final Municipal Access Line Fees To Be Effective July 1, 2015 [LEC,VoIP] The Public Utility Commission of Texas released the final list of city-preferred access line fees for Texas municipalities. The new fees will be applied prospectively and must be implemented by July 1, The fees compensate municipalities for use of public rights-of-way and are paid on a per-access line basis by local exchange carriers and certain facilities-based VoIP providers. Wyoming Increases USF Assessment [LEC, IXC, OSP, CoCoT, Debit Card, Wireless, Inmate] The Wyoming Public Service Commission increased its Universal Service Fund (WUSF) assessment for the 12-month period effective July 1, The new rate will be 1.35% of gross intrastate retail telecommunications revenues. The previous assessment was 1.0%. The new rate is applicable to all customer billings rendered on and after July 1, Follow-Up: FCC Denies Petitions For Stay of Open Internet/Net Neutrality Order [LEC, IXC, VoIP, Wireless] The FCC denied three petitions for stay of its Open Internet/Net Neutrality Order. The denial at the FCC level will permit the parties to seek stays from the U.S. Court of Appeals for the D.C. Circuit, which is hearing the court appeals of the FCC s Order. The FCC found that none of the petitioners had met the standard for obtaining a stay by demonstrating: likelihood of success on the merits, irreparable harm absent a stay, lack of harm to other parties if the stay is granted, and that the public interest favors grant of the stay. NANPA Releases Implementation Schedule For 463 NPA Overlay [LEC, IXC, OSP, CoCoT, Debit Card, Wireless, Inmate] The North American Numbering Plan Administration (NANPA) released the details of its implementation schedule for the 463 NPA overlay to the 317 NPA. The plan implements the all-services distributed overlay adopted by the Indiana Utility Regulatory Commission as the relief method for the 317 numbering plan area (NPA). Under the plan, network preparation and customer education will begin September 19, 2015, and permissive 10-digit dialing will begin March 19, The new NPA will become effective October 17, Also available from TMI. Regulatory And Rate Research Services Have an urgent research project and don t know where to find the information in competitors tariffs? TMI s experienced research staff can help you meet that critical deadline and retrieve the pertinent tariff pages for you. All research is done expeditiously at a competitively low hourly research rate. TMI s tariff research and analysis group can also provide customized spreadsheet summaries of specific rates based on your criteria. We have access to hundreds of tariffs nationwide, as well as a historical library of FCC filings made between 1994 and Other tariffs may be special ordered from State PSCs. All research can be sent electronically to assist you in using the material most effectively within your company. Contact Karen Ritter at with your request today. See TMI Products Available Via Our Online Store!

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