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VoIP: Sec. 706 Data Reporting Dont be a FOOL; The Law is Not DIY


Modernizing the FCC Form 477 Data Program; Development of Nationwide Broadband Data to Evaluate Reasonable and Timely Deployment of Advanced Services to All Americans, Improvement of Wireless Broadband Subscribership Data, and Development of Data on Interconnected Voice over Internet Protocol (VoIP) Subscribership; Service Quality, Customer Satisfaction, Infrastructure and Operating Data Gathering; Review of Wireline Competition Bureau Data Practices, WC Docket Nos. 11-10, 07-38, 08-190, 10-132, Notice of Proposed Rulemaking, 26 FCC Rcd 1508, 1509-10, paras. 1-2 (2011) (2011 Data Gathering NPRM) (seeking comment on whether and how to reform the Form 477 data program to improve the Commission’s ability to carry out its statutory duties, while streamlining and minimizing the overall costs of the program, including the burdens imposed on service providers that are required to file this form, such as interconnected VoIP providers)

Development of Nationwide Broadband Data to Evaluate Reasonable and Timely Deployment of Advanced Services to All Americans, Improvement of Wireless Broadband Subscribership Data, and Development of Data on Interconnected Voice over Internet Protocol (VoIP) Subscribership, WC Docket No. 07-38, Report and Order and Further Notice of Proposed Rulemaking, 23 FCC Rcd 9691, 9704-707, paras. 25-31 (2008)

DEVELOPMENT OF NATIONWIDE BROADBAND DATA TO EVALUATE REASONABLE AND TIMELY DEPLOYMENT OF ADVANCED SERVICES TO ALL AMERICANS, IMPROVEMENT OF WIRELESS BROADBAND SUBSCRIBERSHIP DATA, AND DEVELOPMENT OF DATA ON INTERCONNECTED VOIP SUBSCRIBERSHIP.   FCC Expands, Improves Broadband Data Collection.  by FNPRM. (Dkt No.  07-38). Action by:  the Commission. Adopted:  03/19/2008 by R&O. (FCC No. 08-89).  WCB
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Reporting Requirements for Interconnected VoIP Service Providers

25. In the Data Gathering Notice, we noted that only some providers of interconnected VoIP services were required to report information on Form 477. In order to gather complete information on interconnected VoIP service adoption, the Data Gathering Notice sought comment on how to collect information on the number of interconnected VoIP subscribers in the least burdensome manner. Specifically, the Data Gathering Notice sought comment on whether to require providers of interconnected VoIP service to report information on the number of end-user subscribers in individual states, on the percentage of the subscribers who are residential, and on whether or not the service is provided over a broadband connection provided by the filer or by the filer's affiliate.

26. Interconnected VoIP service subscribers represent an important and rapidly growing part of the U.S. voice service market, and interconnected VoIP services are becoming increasingly competitive with other forms of local telephone service. Under the Commission's current reporting rules, end-user subscriptions to interconnected VoIP services are substantially underreported, which distorts the Commission's view of the extent of interconnected VoIP service deployment and uptake, and potentially distorts the Commission's picture of the U.S. voice service market. Our predictive judgment is that, if we did nothing to update our reporting rules, these distortions would continue to grow.

27. We conclude that we have the authority under Title I of the Act to impose reporting obligations on providers of interconnected VoIP service, and are justified in exercising this authority. Ancillary jurisdiction may be employed, in the Commission's discretion, when Title I of the Act gives the Commission subject matter jurisdiction over the service to be regulated and the assertion of jurisdiction is "reasonably ancillary to the effective performance of [its] various responsibilities." Both predicates for ancillary jurisdiction are satisfied here.

28. First, as we concluded in previous orders, interconnected VoIP services fall within the subject matter jurisdiction granted to the Commission in the Act. Second, our analysis requires us to evaluate whether imposing reporting obligations is reasonably ancillary to the effective performance of the Commission's various responsibilities. Based on the record in this matter, we find that requiring interconnected VoIP service providers to report

  • the number of subscribers they serve (both end user and for resale),
  • the percentage of these who are residential, and
  • whether the interconnected VoIP service is provided over a broadband connection provided by the filer or by the filer's affiliate
  • is reasonably ancillary to the effective performance of the Commission's various responsibilities under the Act. The Commission has a responsibility under section 706 of the Telecommunications Act of 1996 to encourage the deployment on a reasonable and timely basis of advanced telecommunications capability. Furthermore, the Act specifically authorizes the Commission to require annual reports from all carriers subject to the Act, as well as to require the production of other information necessary to enable the Commission to perform the duties and carry out the objects for which it was created.

    29. The Commission's primary goal underlying the reporting requirements is the identification of unserved and underserved areas with respect to advanced telecommunications capability. Our ability to perform the Commission's functions related to this objective depends upon our having adequate information about deployment and uptake of advanced telecommunications capability. As explained above, we do not believe it is possible to obtain an accurate view of the U.S. voice service market without gathering data about interconnected VoIP service subscribers. Thus, the Commission's continued ability to exercise its responsibilities - such as identifying unserved and underserved markets - depends in part on requiring interconnected VoIP providers to report the number of end-user and resale subscribers they serve, the percentage of these who are residential, and whether the interconnected VoIP service is used over a broadband connection provided by the filer or by the filer's affiliate . Thus, we conclude that imposing these reporting obligations is reasonably ancillary to the effective performance of our responsibilities.

    30. Commenters noted that interconnected VoIP services are becoming increasingly competitive with local telephone service, and that it is appropriate to collect information on subscriptions, including the number of connections and the percentage of those connections that are residential, in order to determine the extent of competition posed by the services. Verizon filed the lone objection to recording this information. We conclude that gathering the number of end-user and resale subscribers to interconnected VoIP service and the percentage of those subscribers who are residential would provide valuable information that would enable the Commission to track deployment and adoption of interconnected VoIP service across the nation. Accordingly, we modify Form 477 to require providers of interconnected VoIP service to report information about the number of end-user and resale subscribers they have in individual states, and the percentage of the subscribers who purchase the provider's residential grade service plan. Additionally, to collect useful information as set forth in the Data Gathering Notice, we modify Form 477 to require providers of interconnected VoIP service to report a list of 5-digit ZIP Codes within each state in which they have at least one subscriber. This requirement achieves regulatory parity across technologies that offer voice-grade equivalent lines or channels.

    31. Furthermore, as mentioned above, the Data Gathering Notice sought comment on whether to require providers of end-user interconnected VoIP service to report whether the service is provided over a broadband connection provided by the filer or the filer's affiliate. Commenters noted that providing this information can enable the Commission to detect any competitive concerns resulting from the bundling of broadband and interconnected VoIP services. Because of the nomadic nature of certain VoIP services, AT&T contends that collection of this information would be impossible, or at least meaningless, as users of the interconnected VoIP service are able to use it over other connections as well as the associated broadband connection. We conclude that gathering information regarding the number of subscribers who receive broadband service in conjunction with interconnected VoIP service, and the share of interconnected VoIP service subscribers who can use the service over any broadband connection, would provide valuable information on the deployment of interconnected VoIP service. We therefore require interconnected VoIP providers to report information about the type(s) of broadband connections, if any, they or their affiliates provide in conjunction with interconnected VoIP service, and to report whether the interconnected VoIP service must be used over a single predetermined broadband connection or can be used over any broadband connection.

    Reports

    Form 477

    "In March, 2000, the FCC adopted a semi-annual reporting requirement (FCC Form 477) to determine the extent of local telecommunications competition and deployment of broadband services. In November, 2004, the FCC decided to modify its rules for Form 477. In particular, it decided to remove the mandatory reporting thresholds, which had exempted certain entities from the requirement to file Form 477, and to make certain other modifications to the form. The new rules will apply - for the first time - to the Form 477 filing due September 1, 2005 (i.e., reporting data as of June 30, 2005).

    "FCC Form 477 is filed semi-annually:

  • March 1st of each year: reporting data as of December 31 of the preceding year.

  • September 1st of each year: reporting data as of June 30 of the same year.

  • "FCC Form 477, in electronic spreadsheet format, is posted on the FCC Forms page at www.fcc.gov/formpage.html#477 . Instructions for FCC Form 477 are also posted there. Facilities-based providers of broadband connections to end users, facilities-based providers of mobile telephony services, and all local exchange carriers should check the FCC Forms page prior to each required filing to make sure they use the electronic spreadsheet for that particular filing. For example, the electronic spreadsheet that must be used for the filing that is due on September 1, 2005 contains, on its Cover Page, the specific direction to "File data as of: June 30, 2005." At that time, filers should also review the detailed reporting instructions posted for that particular filing.

    "Entities that may be required to file may also wish to refer to the FAQ's for FCC Form 477 , which will be revised from time to time to provide additional clarification of the reporting requirements. Broadband Deployment Data from Form 477 is available from the FCC's Local Telephone Competition and Broadband Deployment web page.

    Regulation