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• All regulatory fees are to be paid electronically through CORES.
• Failure to meet the regulatory fee payment deadline will result in the assessment of late payment penalties, set by statute at 25%. The FCC does not ordinarily waive late payment penalties.

Please feel free to contact us if you have any questions about the FCC regulatory fee payment process.

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Of note, the Interstate Telecommunications Service Provider fee remained relatively steady for 2024 at 0.005420 per subject revenue dollar for calendar year 2023 including in most cases all interstate and international revenues (compared to a fee in 2023 of 0.00540 per subject revenue dollar for calendar year 2022). By comparison, the fees for International Bearer Circuits - Submarine Cable Systems (based on capacity as of December 31, 2023) have been reduced by 37.8 percent.

Further, in the Report and Order, the Commission rejected a proposal to adopt a new regulatory fee category for manufacturers of unlicensed radiofrequency devices finding, on the basis of the instant record, such a fee category is not practicable at this time.

In addition, as referenced in the Public Notice and more extensively discussed in the Report and Order, the FCC is continuing certain temporary relief measures for earth and space station fee payors and others that are eligible to pay their regulatory fees in installments.

• All regulatory fees are to be paid electronically through CORES.
• The FCC will not issue bills for the regulatory fees. It is the payer’s responsibility to pay the fees it owes based on the Commission’s rules and the Report and Order (regardless of the amount posted in the CORES system).
• Failure to meet the regulatory fee payment deadline will result in the assessment of late payment penalties, set by statute at 25%. The FCC does not ordinarily waive late payment penalties.

The FCC announced details for the upcoming BDC report deadline in a June 25, 2024, Public Notice (subsequently corrected as to the filing deadline on June 27, 2024). Extensive instructional material, including guidance for access to the Broadband Serviceable Location Fabric in connection with submission of fixed broadband availability data, is provided at Broadband Data Collection Resources.

Mandatory BDC Filers are as follows:

(1) Facilities-based providers of fixed and/or mobile broadband internet access (i.e., faster than 200 kbps, in at least one direction) with end-user connections in service as of June 30, 2024;

(2) providers of fixed voice services, including incumbent local exchange carriers and competitive local exchange carriers (whether providing wired or fixed wireless local exchange service) with end-user connections in service as of June 30, 2024;

(3) interconnected VoIP service providers with end-user connections in service as of June 30, 2024; and

(4) facilities-based providers of mobile voice service with end-user connections in service as of June 30, 2024.

See Information for Filers and Who Must File Form 477? for additional details regarding these provider types.

Kelley Drye Communications attorneys regularly update clients on upcoming FCC filing reminders. Click here to see more deadlines coming up in August and September.

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Most provisions of the decision will become effective on July 22, 2024. However, in the publication, the FCC noted two specific rule changes that would be “delayed indefinitely.” The first is the amended “transparency” rule, which requires BIAS providers to make certain disclosures on their websites regarding network management practices, performance, and commercial terms of their services. The second is a non-substantive reorganization within the broadband label rule. Until the specific effective date(s) for these changes is announced, the current iterations of these two rule provisions will remain in place.

Please contact your regular Kelley Drye attorney or any member of the Communications practice group if you have questions about these changes.

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International 214 Holders that received a grant of authority from the FCC for a substantive (non pro forma) transaction, such as a transfer of control or an assignment, within the last three years may be eligible for an exemption and will want to examine the criteria for an exemption closely. International 214 Holders qualifying for the exemption will be able to file a considerably more streamlined response to the Information Collection requirement.

We remind International 214 Holders that before they can even begin to submit their responses, they must ensure that they have a current FRN (FCC Registration Number) associated in the International Communications Filing System, or ICFS, database with the specific international Section 214 authorization(s) for which responses are being submitted. Instructions for confirming this association are provided in both the Public Notice and the Handbook. Arranging new associations and/or correcting existing associations must be coordinated through FCC Staff. (The volume of requests for Staff assistance with the response process is likely to be high and parties should not delay in determining whether they will need such assistance and making the request.)

As discussed in our December 15, 2023, Advisory, we also remind parties needing to file responses that the One-Time Information Filing System appears potentially challenging in its logistical constraints. To minimize complications during the process, we recommend close review of the Public Notice and Handbook before submitting responses to the Information Collection.

The authors and other attorneys of Kelley Drye’s Communications Group are available to provide assistance to any International 214 Holders that have questions regarding their responses to the Information Collection.

Based on our initial review of these materials, it appears that the filing process may prove cumbersome, regardless of the simplicity or complexity of a carrier’s specific ownership information. In our earlier posts on this subject, we encouraged International 214 Holders to begin collecting not only their direct ownership details but, perhaps more importantly, all indirect ownership, control, and investment management information. Foremost among the potential logistical challenges is resolution of any FRN-related issues. We emphasized that all International 214 Holders must respond to the Information Collection and that each must have an FRN in the FCC’s CORES system; however, the OIA’s instructions clarify that the FRN must also be associated in ICFS with the specific international Section 214 authorization(s) for which responses are being submitted. This association should be checked specifically by each responding International 214 Holder. Instructions for confirming this association are provided in both the Public Notice and the Handbook. Arranging new associations and/or correcting existing associations must be coordinated through FCC Staff, which may take some time if the level of requests is high, which might be the case because many Section 214 authorizations likely were issued many years ago.

In addition, use of the Filing System presents a number of somewhat cumbersome logistical aspects – e.g., users cannot go back through the program to correct responses on earlier screens. Instead, to effectively accomplish that, a special link must be requested by email from the Commission to view and modify the already completed screens. Responding International 214 Holders wishing to review their entire submission before certifying are advised to print (or screen-shot) each screen as they complete it because the total set of responses can only be printed after they are submitted. We find that various inadvertent keystrokes may cause the user to be “directed out of the form” and have to re-enter. Generally, users may reduce the risk of these technical “perils” by closely reading the instruction materials.

Every International 214 Holder is strongly recommended to closely review the Public Notice and Handbook before complying with the Information Collection, with particular attention to the discussion of the FRN-authorization association, and proceed to address any FRN association issues as soon as practicable.

We are providing an update to our May 2023 Frequently Asked Questions document regarding the Information Collection. The update reflects today’s Federal Register notice and the limited streamlining in the Supplemental Order.

A separate Public Notice is to be issued shortly by the FCC’s Office of International Affairs (“OIA”), reiterating the response deadline and providing further instructions, and a form, for response submissions. We will circulate and post a copy of the OIA Public Notice, when issued.

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• All regulatory fees are to be paid electronically through CORES.
• The FCC will not issue bills for the regulatory fees and it is the payer’s responsibility to pay the fees owed (regardless of the amount posted in the CORES system).
• Failure to meet the regulatory fee payment deadline will result in the assessment of late payment penalties, set by statute at 25%. The FCC does not ordinarily waive late payment penalties.

Please feel free to contact us if you have any questions about the FCC regulatory fee payment process.

In the same Order, the OIA adopted an exemption from the one-time information collection requirement the Commission adopted in April 2023, applicable to international Section 214 carriers, allowing certain affected carriers to respond on a streamlined basis. We will provide more details in a successive blog post, but briefly, the new Order provides that Section 214 carriers that filed certain types of applications within three years prior to the as-yet-to-be-determined deadline for the one-time information collection will be able to provide reportable foreign interest holder information on an aggregated basis rather than providing, as required of other international Section 214 holders, the identities, specific equity and voting interests, and descriptions of the controlling interests of reportable foreign interest holders. Finally, as noted in the Order, the information request will require additional review by the Office of Management and Budget prior to OIA’s announcement of the effective date and response deadline for the information collection, to be issued via publication in the Federal Register and as an FCC public notice at least thirty days before the applicable reporting deadline. We will keep you apprised.

For a more in-depth look at July USF news and updates on pending appeals and guidance requests before the FCC relating to USF contributions issues, click here to read and subscribe to our monthly USF Tracker.