**Before the**

**Federal Communications Commission**

**Washington, D.C. 20554**

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| In the Matter of                 | *  | WC Docket No. 06-122         |
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| Universal Service Contribution   | ** |                              |
| Methodology                      |    |                              |
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| Requests for Review of Decisions | *) |                              |
| of the Universal Service         | ** |                              |
| Administrator by Curry IP        |    |                              |
| Solutions, *et al*.              | *  |                              |
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+----------------------------------+----+------------------------------+

**ORDER**

**Adopted: October 7, 2008 Released: October 7, 2008**

By the Chief, Wireline Competition Bureau:

# INTRODUCTION

1.  In this order, we grant six requests for reversal of late fees
    associated with the filing of the FCC Form 499-A for 2007.[^1] Upon
    review of these requests, we find that the issue raised here was
    recently addressed in the *2007 499-A Waiver Order*.[^2] Therefore,
    we direct the Universal Service Administrative Company (USAC) and
    the other plan administrators to reverse any late payment fees that
    have been assessed on the applicants listed in the attached
    Appendix.

# Background

2.  In 1999, the Commission established one consolidated data collection
    worksheet to determine carrier contribution amounts for the
    Telecommunications Relay Services Fund (TRS), the North American
    Numbering Plan (NANP), the universal service fund (USF), and local
    number portability (LNP).[^3] Contributors to these programs submit
    an annual Telecommunications Reporting Worksheet (FCC Form 499-A),
    which contains the filer's actual revenues from the previous
    calendar year.[^4] The FCC Form 499-A is due each year, generally on
    the first business day of April.[^5] The Commission and USAC provide
    electronic copies of the FCC Form 499-A on their respective
    websites, and, as a courtesy, USAC annually mails each registered
    filer a hard copy of the form prior to the filing deadline.[^6] Once
    filed, USAC then provides the administrators of TRS, NANP, and LNP
    with revenue data so those administrators can determine the
    contribution obligation of each filer for the various programs.

3.  Over the years the Commission has made various revisions to the FCC
    Form 499-A, which, pursuant to the Paperwork Reduction Act, required
    Office of Management and Budget (OMB) approval.[^7] In 2006, the
    Commission revised the rules for the universal service fund to
    require, among other things, interconnected voice over Internet
    protocol (VoIP) providers to contribute.[^8] In seeking approval for
    the extension of the FCC Form 499-A information collection, OMB
    provided a six-month emergency authorization to the Commission so
    that the changes made in the *2006 Interim Contribution Methodology
    Order* could take effect in the timeframe the Commission sought.[^9]
    Upon expiration of the emergency approval, the Commission sought
    continued OMB approval for this information collection, which it
    received on March 19, 2007.[^10] USAC and the Commission posted the
    FCC Form 499-A on their respective websites that day and the
    Commission released a public notice announcing the approval.[^11] On
    March 30, 2007, USAC e-mailed, where possible, and otherwise sent by
    registered mail its courtesy FCC Form 499-A mailing to registered
    filers. The deadline for filing the 2007 FCC Form 499-A was April 2,
    2007.[^12]

4.  On December 12, 2007, the Wireline Competition Bureau (Bureau)
    adopted an order reversing late filing fees assessed to ten
    petitioners that filed their FCC Forms 499-A after the due
    date.[^13] In that order, the Bureau determined that the petitioners
    should be granted relief because strict enforcement of the filing
    deadline would unfairly penalize them.[^14] Specifically, the Bureau
    found that it was in the public interest to waive the filing
    deadline for the 2007 FCC Form 499-A and directed USAC and the other
    plan administrators to reverse any late payment fees that had been
    assessed on the applicants.[^15]

5.  In the six petitions before us, the petitioners similarly allege
    that late receipt of the 2007 FCC Form 499-A from USAC resulted in
    their late filings and, therefore, the Bureau should waive the
    filing deadline for purposes of the assessment of late filing fees.
    For example, Mobilephone of Humboldt and South Miami Wash Bowl, Inc.
    state that they received the 2007 FCC Form 499-A from USAC on the
    day it was due.[^16] Petitioners assert that, based on their receipt
    of the 2007 FCC Form 499-A in close proximity to the filing
    deadline, their past compliance with filing deadlines, and their
    filing of the forms shortly after the deadline, reversal of the late
    filing fees is warranted.[^17]

# Discussion

6.  As in the *2007 499-A Waiver Order*, we here find that good cause
    exists to waive the April 2, 2007, filing deadline for the
    petitioners.[^18] As noted in that order, the Commission received
    OMB approval of the FCC Form 499-A on March 19, 2007, which left
    filers only fourteen days to submit their 2007 FCC Forms 499-A to
    USAC by the April 2, 2007 deadline.[^19] We recognize that this gave
    the petitioners a very short timeframe to review the revised
    instructions and complete the revised form. In addition, USAC did
    not mail its courtesy notification until March 30, 2007, just three
    days prior to the filing deadline. Finally, all of the petitioners
    filed their 2007 FCC Forms 499-A shortly after the filing
    deadline.[^20] We therefore find that it is in the public interest
    to waive the filing deadline for the 2007 FCC Form 499-A for the six
    filers listed in the Appendix. We direct the TRS, LNP, USF, and NANP
    plan administrators to reverse any late fees associated with these
    entities' late filing of the 2007 FCC Form 499-A.

7.  In addition, as stated in the *2007 499-A Waiver Order*, we take
    this opportunity to remind all filers of the FCC Form 499-A that the
    filing deadline is generally the first business day of April. The
    Commission's form announces the specific date.[^21] We also remind
    filers that filing can be made electronically through USAC's website
    and that the FCC Form 499-A can be submitted in advance of the
    filing deadline.[^22] We caution filers that the form is considered
    filed upon USAC's receipt of the form and not as of the postmark
    date.[^23]

8.  Finally, we are committed to guarding against waste, fraud, and
    abuse, and to ensuring that revenues are accurately reported by
    contributors.[^24] Although we grant the requests addressed here,
    this action in no way affects the authority of the Commission or
    USAC to conduct audits or investigations to determine compliance
    with the universal service contribution requirements. Because audits
    and investigations may provide information showing that a
    contributor failed to comply with the statute or Commission rules,
    such proceedings can reveal instances in which interstate and
    international end-user revenues were improperly reported or reported
    in a manner inconsistent with the Commission's requirements. To the
    extent the Commission finds that revenues were not properly
    reported, it will require USAC to recover contributions based on the
    correct revenues through its normal process. We emphasize that the
    Commission retains the discretion to evaluate the reporting of
    revenues for universal service contribution and to determine on a
    case-by-case basis that waste, fraud, or abuse of occurred and that
    recovery is warranted. The Commission remains committed to ensuring
    the integrity of the program and will continue to aggressively
    pursue instances of waste, fraud, or abuse under the Commission's
    procedures and in cooperation with law enforcement agencies.

# ORDERING CLAUSES

9.  ACCORDINGLY, IT IS ORDERED that, pursuant to the authority contained
    in sections 1-4 and 254 of the Communications Act of 1934, as
    amended, 47 U.S.C. §§ 151-154 and 254, and pursuant to the authority
    delegated in sections 0.91, 0.291, and 54.722(a) of the Commission's
    rules, 47 C.F.R. §§ 0.91, 0.291, and 54.722(a), the requests for
    refund of late filing fees for filers listed in the Appendix ARE
    GRANTED.

10. IT IS FURTHER ORDERED that, pursuant to the authority contained in
    sections 1-4 and 254 of the Communications Act of 1934, as amended,
    47 U.S.C. §§ 151-154 and 254, and pursuant to the authority
    delegated in sections 0.91 and 0.291 of the Commission's rules, 47
    C.F.R. §§ 0.91 and 0.291, the TRS, LNP, USF, and NANP PLAN
    ADMINISTRATORS SHALL REVERSE the late fees charged to the filers
    listed in the Appendix.

11. IT IS FURTHER ORDERED that, pursuant to section 1.102(b)(1) of the
    Commission's rules, 47 C.F.R. § 1.102(b)(1), this order SHALL BE
    EFFECTIVE upon release.

    FEDERAL COMMUNICATIONS COMMISSION

    Dana S. Shaffer

> Chief
>
> Wireline Competition Bureau

**APPENDIX**

  ------------------------------------------------------------------------
  **Company Name**           **Filer ID**    **Actual Filing **Date
                                             Date of 2007    Request
                                             499-A**         Filed**
  -------------------------- --------------- --------------- -------------
  Curry IP Solutions         826188          June 26, 2007   August 28,
                                                             2007

  Mobilephone of Humboldt,   820306          April 4, 2007   August 1,
  Inc.                                                       2007

  Payphone Solutions, LLC    825866          April 5, 2007   July 30, 2007

  PowerNet Global            813233          April 30, 2007  July 13, 2007
  Telecommunications, Inc.                                   

  Ro-Tel Payphones           819376          April 2, 2007   August 6,
                                                             2007

  South Miami Wash Bowl,     811615          April 4, 2007   August 6,
  Inc.                                                       2007
  ------------------------------------------------------------------------

[^1]: Letter from John Curry, Curry IP Solutions, to Federal
    Communications Commission, WC Docket No. 06-122 (dated Aug. 28,
    2007) (Curry Letter); Letter from Rick Blachard, Mobilephone of
    Humboldt, Inc., to Federal Communications Commission, WC Docket No.
    06-122 (dated July 26, 2007) (Mobilephone Letter); Letter from
    Christopher Lattmann, Payphone Solutions, LLC, to Federal
    Communications Commission, WC Docket No. 06-122 (dated July 24,
    2007) (Payphone Letter); Letter from Rasheda Murphy, PowerNet Global
    Telecommunications, Inc., to Federal Communications Commission, WC
    Docket No. 06-122 (dated July 13, 2007) (PowerNet Letter); Letter
    from Marianne Roesner, Ro-Tel Payphones, to Federal Communications
    Commission, WC Docket No. 06-122 (dated Aug. 6, 2007) (Ro-Tel
    Letter); Letter from John Talamas, South Miami Wash Bowl, Inc., to
    Federal Communications Commission, WC Docket No. 06-122 (dated Aug.
    3, 2007) (South Miami Letter).

[^2]: *See Requests for Review of the Decisions of the Universal Service
    Administrator by Berkmont Communications Corporation, et al.*,
    *Federal-State Joint Board on Universal Service*, CC Docket No.
    96-45, Order, 22 FCC Rcd 21505 (Wireline Comp. Bur. 2007) (*2007
    499-A Waiver Order*).

[^3]: *1998 Biennial Regulatory Review-Streamlined Contributor Reporting
    Requirements Associated with Administration of Telecommunications
    Relay Services, North American Numbering Plan, Local Number
    Portability, and Universal Service Support Mechanisms*, CC Docket
    No. 98-171, Report and Order, 14 FCC Rcd 16602 (1999). Prior to the
    adoption of the consolidated worksheet, telecommunications carriers
    and certain telecommunications service providers complied with
    separate reporting requirements for their contributions to TRS, USF,
    NANP, and LNP.

[^4]: *Federal-State Joint Board on Universal Service,* CC Docket Nos.
    96-45, 98-171, 90-571, 92-237, 99-200, 95-116, 98-170, NSD File No.
    L-00-72, Report and Order and Second Further Notice of Proposed
    Rulemaking, 17 FCC Rcd 24952, 24969, para. 29 (2002).

[^5]: *See* Telecommunications Reporting Worksheet, FCC Form 499-A,
    Instructions at 4 (2007).

[^6]: The FCC Form 499-A is available at either the Commission's
    website, <http://www.fcc.gov/formpage.html>, or at USAC's website,
    <http://www.usac.org/fund-administration/contributors/revenue-reporting/default.aspx>
    (last visited Oct. 7, 2008).

[^7]: Paperwork Reduction Act of 1995, P.L. No. 104-13, 44 U.S.C. §
    3501, *et seq*. (1995).

[^8]: *See Universal Service Contribution Methodology*, WC Docket Nos.
    06-122, 04-36, CC Docket Nos. 96-45, 98-171, 90‑571, 92-237, 99-200,
    95-116, 98-170, NSD File No. L-00-72, Report and Order and Notice of
    Proposed Rulemaking, 21 FCC Rcd 7518 (2006) (*2006 Interim
    Contribution Methodology Order*), *aff'd in part, vacated in part*,
    *Vonage Holdings Corp. v. FCC*, 489 F.3d 1232, 1244 (D.C. Cir.
    2007).

[^9]: *See Wireline Competition Bureau Streamlines Reporting
    Requirements for Interconnected VoIP Providers and Announces OMB
    Approval of New FCC Forms 499-A and 499-Q*, Public Notice, 21 FCC
    Rcd 8623 (Wireline Comp. Bur. 2006).

[^10]: *See Wireline Competition Bureau Announces OMB Approval of the
    2007 FCC Form 499-A*, Public Notice, 22 FCC Rcd 5356 (Wireline Comp.
    Bur. 2007).

[^11]: *Id*.

[^12]: *See* Telecommunications Reporting Worksheet, FCC Form 499-A
    (2007).

[^13]: *See 2007 499-A Waiver Order*, 22 FCC Rcd at 21505, para. 1.

[^14]: *Id.* at 21507, para. 5.

[^15]: *Id*.

[^16]: *See* Mobilephone Letter at 1; South Miami Letter at 1.

[^17]: *See*, *e.g.*, Payphone Letter at 1; South Miami Letter at 1.

[^18]: Generally, the Commission's rules may be waived for good cause
    shown. 47 C.F.R. § 1.3. The Commission may exercise its discretion
    to waive a rule where the particular facts make strict compliance
    inconsistent with the public interest. *Northeast Cellular Telephone
    Co. v. FCC*, 897 F.2d 1164, 1166 (D.C. Cir. 1990) (*Northeast
    Cellular*). In addition, the Commission may take into account
    considerations of hardship, equity, or more effective implementation
    of overall policy on an individual basis. *WAIT Radio v. FCC*, 418
    F.2d 1153, 1159 (D.C. Cir. 1969); *Northeast Cellular*, 897 F.2d at
    1166. Waiver of the Commission's rules is therefore appropriate only
    if special circumstances warrant a deviation from the general rule,
    and such deviation will serve the public interest. *Northeast
    Cellular*, 897 F.2d at 1166. Although certain petitioners have
    requested that the Bureau review USAC's decision under section
    54.723 of the Commission's rules, we find the appropriate procedural
    relief is to waive the filing deadline. 47 C.F.R. §§1.3, 54.722(a).

[^19]: *See 2007 499-A Waiver Order*, 22 FCC Rcd at 21506, para. 3.

[^20]: *See* Appendix.

[^21]: *See e.g.*, Telecommunications Reporting Worksheet, FCC Form
    499-A (2007) at <http://www.usac.org/fund-administration/forms/>
    (last visited Oct. 7, 2008).

[^22]: *See* <http://www.usac.org/fund-administration/forms/> (last
    visited Oct. 7, 2008).

[^23]: *Request for Review by Atlantic Digital, Inc. of Decision of
    Universal Service Administrator*, CC Docket No. 96-45, Order, 20 FCC
    Rcd 4224, 4225-26, paras. 3, 5 (2005).

[^24]: *See AT&T Corp. Petition for Declaratory Ruling regarding
    Enhanced Prepaid Calling Card Services*, *Regulation of Prepaid
    Calling Card Services*, WC Docket No. 03-133, 05-68, Order and
    Notice of Proposed Rulemaking, 20 FCC Rcd 2846 (2005).