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Responding to a petition by the American Public Communications Co...

Responding to a petition by the American Public Communications Council (APCC), the FCC clarified part of its universal service rules as they apply to payphone providers. The FCC denied an APCC request to reconsider requiring independent payphone providers to…

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contribute to the Universal Service Fund (USF). However, it agreed to clarify that if an independent payphone provider purchased telecommunications for resale and contributed directly to the Universal Service Fund (USF), it shouldn’t be subject to the “pass-through” of universal service contributions by interexchange carriers and LECs. “Allowing such a practice results in a double burden for payphone providers that use resold telecommunications services,” the FCC said. The action came as the FCC considered numerous petitions for reconsideration of 2 universal service orders. In an order issued Nov. 29, the FCC denied most of the petitions either because the FCC said they raised no new facts or were moot. However, the FCC also clarified, in response to a request by the Wireless Cable Assn., that MDS licensees aren’t required to contribute to the USF on the basis of revenue derived from broadcasting services. The FCC also clarified that MDS licensees that provide interstate telecom services to others for a fee on a non-common carrier basis aren’t exempt from contribution requirements. The FCC clarified for CTIA that mobile carriers are required to report as end-user revenues the proceeds they gain from providing telecommunications to entities qualifying for the so-called “de minimis exemption.” However, they don’t have to identify individually the resale customers qualifying for the exemption. The exemption applies to carriers whose telecom activities are so small their contributions would be “de minimis.” Among those denied was a petition by Mobile Satellite Ventures for reconsideration of a decision that all ‘pure’ resellers were ineligible for universal service support. MSV had argued that resellers should be eligible for support when they resell the services of a facilities-based carrier that isn’t a recipient of universal service subsidies.