The FCC recently issued a Notice of Proposed Rulemaking soliciting comments on its Annual Regulatory Fees. For Interstate Telecommunications Service Providers (“ITSPs”), the FCC proposes a fee factor of .00351 (or 0.351%), which reflects an increase over last year‘s fee factor of 0.00342 (or 0.342%).
To arrive at the regulatory fee owed by an ITSP, the proposed fee factor will be applied against last year‘s interstate and international telecommunications revenue, as reported in the annual FCC Form 499-A.
The annual FCC Regulatory Fee applicable to ITSPs must be paid by all interstate wireline telecommunications providers and interconnected VoIP service providers.
Although no due date has been established at this time, consistent with past practices, we anticipate the FCC will set a late August to mid-September due date. Payment of FCC regulatory fees must be made online using FCC Form 159. The firm will send clients a reminder once the FCC announces the final annual ITSP regulatory fee and sets a deadline for payment.
Details and Important Reminders
- Duty to Pay
An ITSP‘s obligation to pay regulatory fees exists by virtue of having provided interstate or international telecommunications services or interconnected VoIP services during the past year, regardless of whether you receive an invoice.
- De Minimis Exemption
Entities whose total regulatory fee liability, including all categories for which payment is due, amounts to less than $10.00 will be exempted from payment of the FCC’s regulatory fees.
- Non-ITSP Regulatory Fees
In addition to the proposed ITSP fee factor, the FCC also solicits comments on dozens of other proposed fee factors which apply to a variety of other FCC-regulated communication services, including, but not limited to, broadcast & mass media service providers, submarine cable licensees, and CMRS/wireless service providers. If your company possesses an FCC authorization or provides services other than those subject to the ITSP fee factor, please contact us for additional details.
25% Late Payment Penalty
Clients are also reminded that the FCC will immediately impose a significant penalty, equal to 25% of the regulatory fee owed, for any payments received after the due date. For example: paying a $10,000 regulatory fee even one (1) day late would yield a $2,500 late payment penalty.Failure to pay regulatory fees and/or any late penalty may lead to additional sanctions, fees, and charges and could result in the revocation of licenses and authorizations.