Small Entity Compliance Guide

**Local Telephone Competition and Broadband Reporting**

**(FCC Form 477)**

**DA 05-1676**

**WC Docket No. 04-141**

> **This Guide is prepared in accordance with the requirements of
> Section 212 of the Small Business Regulatory Enforcement Fairness Act
> of 1996. It is intended to help small entities---small businesses,
> small organizations (non-profits), and small governmental
> jurisdictions---to comply with the new rule/s adopted in the
> above-referenced FCC rulemaking docket/s. This Guide is not intended
> to replace the rule/s and, therefore, final authority rests solely
> with the rule/s. Although we have attempted to cover all parts of the
> rule/s that might be especially important to small entities, the
> coverage may not be exhaustive. As a result, in any civil or
> administrative action against a small entity for a violation of a rule
> or rules, the content of the Small Entity Compliance Guide may be
> considered only as evidence of the reasonableness or appropriateness
> of proposed fines, penalties or damages. This Guide may not apply in a
> particular situation based upon the circumstances, and the FCC retains
> the discretion to adopt approaches on a case-by-case basis that may
> differ from this Guide, where appropriate. Any decisions regarding a
> particular small entity will be based on the statute and regulations.
> Interested parties are free to file comments regarding this Guide and
> the appropriateness of its application to a particular situation; the
> FCC will consider whether the recommendations or interpretations in
> the Guide are appropriate in that situation. The FCC may decide to
> revise this Guide without public notice to reflect changes in the
> FCC's approach to implementing a rule, or to clarify or update the
> text of the Guide. Direct your comments and recommendations, or calls
> for further assistance, to the FCC's Consumer Center:**

**1-888-CALL-FCC (1-888-225-5322)**

**  \
TTY: 1-888-TELL-FCC  (1-888-835-5322)**

**  \
Fax: 202-418-0232**

[**fccinfo@fcc.gov**](mailto:fccinfo@fcc.gov)

**[COMPLIANCE REQUIREMENTS]{.underline}**

**[Objectives of the proceeding]{.underline}**

In November 2004, the Commission adopted a modified Form 477 to improve
its local telephone competition and broadband data gathering program and
extended the program for five years. The information collected on Form
477 helps the Commission and the public understand the extent of local
telephone competition and broadband deployment, which is important to
the nation's economic, educational, and social well-being.

**[Rules and procedures that the Commission amended]{.underline}**

-   The Commission **[eliminated reporting thresholds]{.underline}**
    that previously had exempted certain facilities-based providers of
    broadband connections to end-user locations, local exchange
    carriers, and facilities-based providers of mobile telephony
    services from filing Form 477 (47 C.F.R. §§ 1.7001, 20.15, and
    43.11).

-   The Commission **[adopted a modified Form 477]{.underline}** and
    **[instructions]{.underline}** for completing and filing the form.

-   The Commission **[extended]{.underline}** the Form 477 program
    through March 2010.

**[Compliance date and subsequent deadlines]{.underline}**

-   **The compliance date is September 1, 2005.**

> Beginning with the Form 477 filing due no later than September 1,
> 2005, **all** facilities-based providers of broadband connections to
> end-user locations, **all** local exchange carriers, and **all**
> facilities-based providers of mobile telephony services must file the
> modified Form 477 that the Commission adopted in November 2004.

-   **Deadlines for subsequent [semi-annual]{.underline} filings.**

-   No later than **March 1** (reporting data as of December 31 of the
    preceding year).

-   No later than **September 1** (reporting data as of June 30 of the
    same year).

**[Impact on small entities]{.underline}**

A small entity is required to file Form 477 semi-annually if it is (1) a
**facilities-based broadband provider** with at least one broadband
connection in service to an end-user location, (2) an incumbent or
competitive **local exchange carrier** (ILEC or CLEC) with at least one
voice telephone service line, or (3) a **facilities-based provider of
mobile telephony service** to at least one subscriber.

-   For the purposes of Form 477, a **[facilities-based broadband
    provider]{.underline}** is a provider of **[broadband
    connections]{.underline}** to **[end-user locations]{.underline}**
    that (1) **owns** the portion of the physical facility that
    terminates at the end-user location, (2) obtains unbundled network
    elements, special access lines, or other leased facilities that
    terminate at end-user locations and **provisions/equips** them as
    broadband, or (3) **provisions/equips** wireless channels to
    end-user locations over licensed spectrum or over spectrum that the
    provider uses on an unlicensed basis. Entities must file a separate
    Form 477 to report information about in-service broadband
    connections for **each state** in which the entity has at least one
    facilities-based broadband connection.

> **[Examples]{.underline}** of small entities that may be
> facilities-based broadband providers for purposes of Form 477 include
> cable TV systems, competitive LECs, incumbent LECs, and satellite
> carriers.
>
> **[Additional examples]{.underline}** include municipalities or other
> governmental entities that deploy broadband connections to homes
> and/or businesses; investor-owned or public utilities that provide, on
> commercial basis, "Access BPL" (i.e., the use of electric power lines
> to provide Internet connectivity **to** a home or business premises
> from an outside source); and wireless ISPs (or "WISPs") that equip or
> provision broadband connections to end-user locations by using their
> own equipment and spectrum on an unlicensed basis.
>
> These examples **are not** an exhaustive list.

-   **[Broadband connections]{.underline}** are lines (or wireless
    channels) that terminate at an end-user location and enable the end
    user to receive information from and/or send information to the
    Internet at information transfer rates exceeding 200 kilobits per
    second (kbps) in at least one direction. (Providers of terrestrial
    mobile wireless broadband services should think in terms of
    subscribers whose wireless modem laptop cards or other mobile
    devices are capable of sending or receiving data at speeds in excess
    of 200 kbps.)

-   **[End users]{.underline}** are residential, business,
    institutional, or government entities who use services for their own
    purposes and who do not resell those services to other entities.

> A facilities-based broadband provider **does not necessarily have a
> retail relationship** with end users of the broadband Internet-access
> services that are delivered over its broadband connections. For
> example, the end users of Internet-access services that are delivered
> over a small entity's broadband connections might be billed by an ISP
> that is affiliated with it -- possibly through a holding company. To
> meet its obligation to report **all** the information about its
> facilities-based broadband connections that is specified on Form 477,
> the facilities-based broadband provider might need to consult with its
> affiliate or with its holding company and/or arrange for its holding
> company to file, and certify, Form 477 on its behalf.

-   A **[local exchange carrier]{.underline}** is an entity that is
    engaged in the provision of telephone exchange service or exchange
    access service (47 U.S.C. § 153(26)).

-   A **[facilities-based provider of mobile telephony
    services]{.underline}** is an entity that serves **[mobile voice
    telephony subscribers]{.underline}** over its **[own
    facilities]{.underline}**. These subscribers include subscribers the
    entity bills directly and also subscribers that are billed by a
    mobile telephony service reseller. Entities that **purely resell**
    mobile telephony service should not file Form 477.

-   A **[mobile voice telephony subscriber]{.underline}** is a mobile
    handset, car-phone, or other revenue-generating, active, voice unit
    that has a unique phone number and that can place and receive calls
    from the public switched network.

-   **[Own facilities]{.underline}** means spectrum for which the mobile
    telephony service provider holds a license, or that it manages.

-   The term **[state]{.underline}** includes the District of Columbia
    and the "Territories and possessions" (47 U.S.C. § 153(40)).

**[Steps a small entity must take to comply with the new
rules]{.underline}**

For each semi-annual filing, a small entity should:

**1. [Determine whether it must file and the number of required Form 477
files]{.underline}.**

-   Obtain the Form 477 (which is an Excel spreadsheet) and the
    instructions for a particular filing from
    [www.fcc.gov/formpage.html#477](http://www.fcc.gov/formpage.html#477),
    where they will be posted several weeks in advance of the filing
    deadline.

> Entities that are not able to download the Form 477 and instructions
> can obtain assistance by e-mailing <477INFO@fcc.gov> or telephoning
> (202) 418-0940 or (202) 418-0484 (for users of TTY equipment) and
> asking to speak with a member of the FCC Form 477 Team. These
> materials also may be purchased from the FCC's duplicating contractor,
> Best Copy and Printing, Inc., telephone (202) 488-5300 or (800)
> 378-3160, fax (202) 488-5563, TTY (202) 488-5562, or e-mail to
> <fcc@bcpiweb.com>.

-   Identify those specific states in which the small entity is a
    facilities-based broadband provider, LEC, or facilities-based
    provider of mobile telephony services.

> Form 477 must be filed on a **state-by-state** basis. Information
> about operations in different states **may not** be combined in a
> single Form 477.

-   Identify those states (if any) in which the small entity has both
    ILEC operations and other types of operations ("non-ILEC"
    operations) in the state. These two categories of operations must be
    reported on separate forms. A small entity may, however, choose to
    combine information for multiple ILEC operations (in a single state)
    into a single Form 477. Similarly, it may choose to combine
    information for multiple non-ILEC operations (in a single state)
    into a single Form 477.

**2. [Complete the Cover Page and name each Form 477
file]{.underline}.**

-   For **each** Form 477s that must be submitted, answer **all** eight
    questions in the **Cover Page** section of the form.

-   Once all questions on the Cover Page are answered, a **suggested
    name** will appear in the "Example" box to the right of question 7
    of the Cover Page. The suggested name provides a "helpful hint" for
    naming completed forms according to the required file-naming
    convention, which is specified at page 12 of the instructions for
    the form.

**3. [Complete the relevant Parts of each Form 477 file]{.underline}.**

> Form 477 has five Parts (Part I through Part V) in addition to the
> Cover Page. A small entity should complete **only** the **Parts** that
> apply to its situation.
>
> Within any of **Parts I, II, or III** of the form that **does** apply,
> a small entity should **fully** complete those particular **lines**
> that apply to its situation. (Lines in Parts I, II, and III that do
> not apply may be left blank.)

-   **[Part I.A]{.underline}: Facilities-based broadband providers**
    must complete the relevant **lines** in Part I.A (and also the
    relevant **columns** in Part V, which are discussed later in this
    guide). In many cases only one or two of the ten lines in Part I.A
    will be relevant to the small entity's situation.

> Each line in Part I.A (and column in Part V) refers to a **particular
> broadband** **technology**. If more than one technology is used to
> deploy a particular broadband connection, that connection should be
> reported according to the technology used where the connection
> terminates at the end-user location.

-   **[Part I.B]{.underline}: ILECs that report** **DSL connections** in
    Part I.A must answer question 11 in Part I.B. **Cable TV systems
    that report cable modem connections** in Part I.A must answer
    question 12 in Part I.B. All other facilities-based broadband
    providers should **skip** Part I.B.

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-   **[Part II]{.underline}: CLECs and ILECs** must complete the
    relevant lines in Part II. Part II has five lines. A small entity
    may find that only Line 1 of Part II applies to its situation.

-   All LECs that provide **[voice telephone service]{.underline}** to
    end users must fully complete **Line 1** of Part II -- and also
    **column (j)** in Part V. This includes facilities-based LECs and
    also LECs that provide voice telephone service to end users by
    reselling the services of unaffiliated LECs or by using the
    facilities of unaffiliated LECs.

> **[Voice telephone service]{.underline}** is, for purposes of Form
> 477, local exchange or exchange access services that allow end users
> to originate and/or terminate local telephone calls on the public
> switched network, whether used by the end user for voice telephone
> calls or for other types of calls carried over the public switched
> network (for example, lines connected to facsimile equipment or lines
> used occasionally or exclusively for "dial-up" connection to the
> Internet).

-   A LEC should complete **Line 2** of Part II **only if** it makes its
    voice telephone service available to unaffiliated LECs for resale
    under the type of wholesale arrangement (sometimes called "Total
    Service Resale") specified in the Telecommunications Act of 1996, in
    which case the relevant state regulatory commission would have
    determined the wholesale rates that the LEC must charge (47 U.S.C.
    §§ 251(c)(4), 252(d)(3)). The obligation to provide wholesale
    services in this way applies only to ILECs, and certain rural ILECs
    may be exempt (47 U.S.C. § 251(f)).

-   A LEC should complete **Line 3** of Part II **only if** it makes its
    voice telephone service available to unaffiliated LECs for resale in
    some way other than "Total Service Resale" (as discussed immediately
    above), such as by reselling a tariffed service or negotiating a
    commercial arrangement.

-   A LEC should complete **Line 4** of Part II **only if** it provides
    unbundled network element (UNE) loops, without switching, to
    unaffiliated LECs at cost-based rates. The obligation to provide
    unbundled network elements (UNEs) at cost-based rates applies only
    to ILECs (47 U.S.C. §§ 251(c)(3), 251(d)), and certain rural ILECs
    may be exempt (47 U.S.C. § 251(f)).

-   A LEC should complete **Line 5** of Part II **only if** it provides
    UNE loops, with switching (the so-called "UNE-Platform"), to
    unaffiliated LECs at cost-based rates. Again, the obligation to
    provide UNEs at cost-based rates applies only to ILECs, and certain
    rural ILECs may be exempt.

-   **[Part III]{.underline}: Facilities-based mobile telephony service
    providers** must answer the two questions in Part III of the form.

-   **[Part IV]{.underline}:** Part IV of the form is available, on an
    as-needed basis, for notes to explain particular pieces of data
    filed elsewhere in the form.

-   **[Part V]{.underline}:** A **LEC** that completes Part II must also
    complete **column (j)** of Part V to report the ZIP Codes in which
    it has at least one end user of its voice telephone service. A
    **facilities-based broadband provider** that reports broadband
    connections (or terrestrial mobile wireless subscribers) in Part I.A
    must also report ZIP Codes in the **relevant** columns of Part V.
    For nearly all broadband providers, the number of columns (which
    pertain to specific broadband technologies) that must be completed
    in Part V will be the same as the number of lines that must be
    completed in Part I.A.

> **Example:** An entity that reports cable modem connections, in Line 4
> of Part I, will list, in column (c) of Part V, those ZIP Codes in
> which at least one of the reported cable modem connections is in
> service to an end-user location.
>
> **Example:** An entity that reports asymmetric xDSL ("ADSL")
> connections, in Line 1 of Part I, and also traditional wireline
> connections, such as T-carrier connections, in Line 3 of Part I, will
> list those ZIP Codes in which there is at least one end user of a
> reported ADSL connection in column (a) of Part V. The entity will
> separately list, in column (i) of Part V, those ZIP Codes in which at
> least one of the reported traditional wireline connections terminates
> at an end-user location.
>
> **Example:** A WISP that reports fixed wireless connections, in Line 7
> of Part I, will report, in column (f) of Part V, those ZIP Codes in
> which at least one of the reported fixed wireless connections
> terminates at an end-user location.
>
> **Example:** An entity that reports terrestrial mobile wireless
> broadband subscribers, in Line 8 of Part I, will report, in column (g)
> of Part V, those ZIP Codes in which the terrestrial mobile wireless
> broadband service is deployed and offered for sale to subscribers.
>
> These examples **are not** an exhaustive list.

**4. [Submit completed Form 477 files and the Certification
Statement]{.underline}.**

-   Send completed Form 477s to <FCC477@fcc.gov> as attachments to an
    e-mail (preferred) or submit compact discs or floppy diskettes by
    one of the other methods specified at page 11 of the instructions.
    Paper copies of completed Form 477s **may not** be submitted.

-   Print a copy of the Certification Statement (which is page 14 of the
    instructions), which an officer of the entity must sign. Fax the
    completed and signed statement to (202) 418-0520 or submit it by one
    of the other methods discussed at page 11 of the instructions.

> Entities that must complete and file Form 477s for operations in
> different states, or for different types of operations in a single
> state, may choose different ways to make the required certification. A
> single officer may certify the accuracy of all the completed forms.
> Alternatively, officers of the different operations may certify the
> accuracy of information about those operations.

**[Filing fee]{.underline}**. There is no filing fee associated with
Form 477.

**[Recordkeeping requirements and obligation to file
revisions]{.underline}**. There are no recordkeeping requirements
associated specifically with Form 477. Entities must submit **revised
filings** if they discover a significant error in the filed information
(see page 13 of the instructions).

**[Internet links to related documents and forms]{.underline}**

-   **FCC Form 477 and Instructions:**
    [www.fcc.gov/formpage.html#477](http://www.fcc.gov/formpage.html#477)

-   **Report and Order** -- FCC 04-266, released on November 12, 2004:
    <http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-04-266A1.pdf>

-   **Form 477 Frequently Asked Questions (FAQs):**
    <http://www.fcc.gov/broadband/broadband_data_faq.html>

**See also** the table of **Illustrative Small Entity Situations** on
the next page of this guide for examples of which particular questions
on Form 477 would have to be answered in various illustrative
situations.

+----------------+----------+---------+-------+---------+-----------+
| **             | Part I:  | Part    | Part  | Part    | Part V:   |
| Illustrative** | *Br      | II:     | III:  | IV:     |           |
|                | oadband* | *W      | *M    | *Expla  | *ZIP      |
| **Small        |          | ireline | obile | nations | Codes*    |
| Entity**       |          | Local   | Local | &       |           |
|                |          | Tel     | Telep | Co      |           |
| **Situations** |          | ephone* | hone* | mments* |           |
+----------------+----------+---------+-------+---------+-----------+
| **Small        |          |         |       |         |           |
| LECs:**        |          |         |       |         |           |
+----------------+----------+---------+-------+---------+-----------+
| ILEC, has no   | Skip     | Line 1  | Skip  | As      | Col. (j)  |
| broadband      |          |         |       | needed  |           |
| connections,   |          |         |       |         |           |
| does not       |          |         |       |         |           |
| provide to     |          |         |       |         |           |
| CLECs any UNEs |          |         |       |         |           |
| or services    |          |         |       |         |           |
| for resale to  |          |         |       |         |           |
| end users      |          |         |       |         |           |
+----------------+----------+---------+-------+---------+-----------+
| ILEC, above,   | Skip     | Line 1  | A     | As      | Col. (j)  |
| also holds a   |          |         | nswer | needed  |           |
| spectrum       |          |         | the   |         |           |
| license that   |          |         | two   |         |           |
| it uses to     |          |         |       |         |           |
| provide "cell  |          |         | ques  |         |           |
| phone"         |          |         | tions |         |           |
| service; its   |          |         |       |         |           |
| cell phone     |          |         |       |         |           |
| subscribers    |          |         |       |         |           |
| can use the    |          |         |       |         |           |
| Internet, but  |          |         |       |         |           |
| not at         |          |         |       |         |           |
| broadband      |          |         |       |         |           |
| speeds         |          |         |       |         |           |
+----------------+----------+---------+-------+---------+-----------+
| ILEC with ADSL | Line 1   | Line 1  | Skip  | As      | Col. (a), |
| and T-1        | and Line |         |       | needed  | (i), and  |
| connections to | 3 of     |         |       |         | (j)       |
| end-user       | Part     |         |       |         |           |
| locations,     | I.A, and |         |       |         |           |
| does not       | also     |         |       |         |           |
| provide UNEs   | question |         |       |         |           |
| or services    | 11 of    |         |       |         |           |
| for resale     | Part I.B |         |       |         |           |
+----------------+----------+---------+-------+---------+-----------+
| ILEC with a    | In a     | Line 1  | Skip  | As      | Col. (j)  |
| CLEC affiliate | form for | in      |       | needed  | in form   |
| and a cable TV | only     | s       |       |         | reporting |
| affiliate with | non-ILEC | eparate |       |         | ILEC      |
| cable modem    | ope      | forms   |       |         | op        |
| connections;   | rations, | re      |       |         | erations; |
| ILEC does not  | Line 4   | porting |       |         | col. (c)  |
| provide        | of Part  | ILEC    |       |         | and (j)   |
| unaffiliated   | I.A and  | and     |       |         | in a form |
| CLECs with     | also     | n       |       |         | reporting |
| UNEs or        | question | on-ILEC |       |         | non-ILEC  |
| services for   | 12 of    | ope     |       |         | o         |
| resale to end  | Part I.B | rations |       |         | perations |
| users          |          |         |       |         |           |
+----------------+----------+---------+-------+---------+-----------+
| **Other        |          |         |       |         |           |
| Broadband:**   |          |         |       |         |           |
+----------------+----------+---------+-------+---------+-----------+
| Cable TV       | Line 4   | Skip    | Skip  | As      | Col. (c)  |
| system         | of Part  |         |       | needed  |           |
| provides cable | I.A, and |         |       |         |           |
| modem service; | also     |         |       |         |           |
| not authorized | question |         |       |         |           |
| as CLEC in the | 12 of    |         |       |         |           |
| state          | Part I.B |         |       |         |           |
+----------------+----------+---------+-------+---------+-----------+
| WISP uses      | Line 7   | Skip    | Skip  | As      | Col. (f)  |
| spectrum on an | of Part  |         |       | needed  |           |
| unlicensed     | I.A      |         |       |         |           |
| basis to       |          |         |       |         |           |
| provide        |          |         |       |         |           |
| broadband      |          |         |       |         |           |
| I              |          |         |       |         |           |
| nternet-access |          |         |       |         |           |
| service        |          |         |       |         |           |
+----------------+----------+---------+-------+---------+-----------+
| Municipality   | Line 5   | Skip    | Skip  | As      | Col. (d)  |
| owns and       | of Part  |         |       | needed  |           |
| equips         | I.A      |         |       |         |           |
| fiber-t        |          |         |       |         |           |
| o-the-end-user |          |         |       |         |           |
| connections    |          |         |       |         |           |
| over which     |          |         |       |         |           |
| unaffiliated   |          |         |       |         |           |
| ISPs deliver   |          |         |       |         |           |
| retail         |          |         |       |         |           |
| broadband      |          |         |       |         |           |
| I              |          |         |       |         |           |
| nternet-access |          |         |       |         |           |
| services       |          |         |       |         |           |
+----------------+----------+---------+-------+---------+-----------+
| Utility owns   | Line 9   | Skip    | Skip  | As      | Col. (h)  |
| and equips     | of Part  |         |       | needed  |           |
| "Access BPL"   | I.A      |         |       |         |           |
| connections to |          |         |       |         |           |
| end-user       |          |         |       |         |           |
| locations      |          |         |       |         |           |
+----------------+----------+---------+-------+---------+-----------+

> Note: The examples in this table are illustrative. They do not
> exhaustively describe the particular circumstances of all the small
> entities that are obligated to file FCC Form 477.