Wholesale Providers File Petition for Clarification or Reconsideration of WCB’s TelePacific Order


On June 1, 2010, AT&T, Verizon, CenturyLink, and SureWest (“Wholesale Providers”) filed a petition for clarification or partial reconsideration (“Petition”) of the Federal Communications Commission‘s (“FCC” or “Commission”) Wireline Competition Bureau (“WCB”)‘s order (“Telepacific Order”) granting TelePacific Corp. d/b/a TelePacific Communications‘ (“TelePacific”) Request for Review of a December 2009 Universal Service Administrative Company (“USAC”) decision reclassifying its Internet access service as a Universal Service Fund (“USF”)-assessable interstate telecommunications service.

In the TelePacific Order, the WCB concluded that the FCC‘s 2005 Wireline Broadband Order exempts from USF liability revenues derived by entities purchasing or leasing transmission from telecommunications carriers to provide wireline broadband Internet access services.  However, the WCB also concluded that it had insufficient information to determine whether USF contributions must be assessed on revenues derived from the sale of T-1 lines to TelePacific.  To resolve the issue, the WCB ordered TelePacific to provide the WCB with a detailed explanation of its reporting of revenues derived from the sale of services over T-1 lines and to provide USAC with the names and contact information of its wholesale providers of transmission services within 60 days.

In their Petition, the Wholesale Providers request that the WCB clarify or partially reconsider the TelePacific Order and confirm that under the Commission‘s existing orders and rules TelePacific‘s underlying wholesale carriers cannot be forced to restate prior year revenues and make additional contributions to the USF.  The Wholesale Providers asserts that language in the TelePacific Order suggests that the WCB intends to require that TelePacific‘s wholesale carriers reclassify as end-user revenues certain “carrier‘s carrier” revenues reported as such based on TelePacific‘s reseller certifications.  The Wholesale Providers argue that such an approach would violate the Commission‘s orders and rules, which require USF contributions on end-user telecommunications revenues and not on revenues associated with wholesale purchases by resellers.

Additional information regarding the above issues can be obtained at the following links:

Wholesale Providers‘ Petition

WCB TelePacific Order

TelePacific Petition

If you have any questions or concerns regarding the Wholesale Providers‘ Petition or WCB‘s TelePacific Order, please contact the attorney assigned to your account.  Alternatively, you may reply to this message via e-mail and someone will promptly respond to your inquiry.

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