On April 3, 2012, PaeTec Communications, Inc. (“PaeTec”) filed a petition for review with the Federal Communications Commission (“FCC”) requesting the reversal of a revenue reclassification decision made in a recent USAC audit.  PaeTec disputes USAC’s finding that a large portion of its private line service revenue in 2008 should be classified as interstate telecommunications revenue.  PaeTec had classified 100 percent of its private line revenue as intrastate, of which USAC then reclassified in its audit as over 67 percent interstate.  USAC was said to have reclassified the revenue as interstate on the basis that private line customers who failed to provide written certifications of their percentage of interstate traffic to PaeTec were presumed by USAC to be carrying entirely interstate traffic according to Form 499-A filing instructions.  PaeTec argues that FCC precedent does not support a presumed finding of interstate traffic in such circumstances and also that in any event, USAC’s calculation of interstate traffic in the audit was incorrect.

To view PaeTec’s appeal, click here:

https://apps.fcc.gov/ecfs/document/view?id=7021906600