Pursuant to Federal Communications Commission (“FCC” or “Commission”) requirements, all prepaid calling card providers must report percentage of interstate usage (“PIU”) factors and call volumes on which these factors were calculated to those carriers from which they purchase transport services by the 45^th day of each calendar quarter. The next-scheduled PIU report to underlying transport providers is due no later than May 15, 2009.This report will cover the first quarter of 2009 (January 1, 2009 – March 31, 2009).

Prepaid calling card providers must report PIU factors to ALL carriers from which they purchase transport services.Specifically, a prepaid calling card provider must report:

1. Prepaid calling card PIU factors, and
2. Call volumes on which these factors were calculated (based on not less than a one-day representative sample).

These factors must be computed separately for originating and terminating traffic on a state-specific basis. The transport provider may use the reported PIU in calculating any PIU factors it reports to LECs and it may disclose the reported PIU upon request by such LECs.

If the prepaid calling card provider fails to provide the appropriate PIU information to the transport provider in a timely manner, the transport provider may treat the prepaid calling card provider‘s traffic as subject to a 50 percent default PIU. The transport provider may notify any originating or terminating LEC that it has applied the default PIU to the prepaid calling card provider‘s traffic for that reporting period. A transport provider also may audit the PIU reports it receives from a calling card provider if it has a reasonable basis to believe that such reports contain inaccurate or misleading data.

CLIENT ALERT

All prepaid calling card clients are advised to prepare and submit PIU Reports to their underlying transport carriers by May 15, 2009. In order to file the next FCC Certification through our firm or pursuant to the C&R Services of our affiliated consulting firm, The Commpliance Group, all clients must first comply with the current requirement to send the Carrier Report.

Recent FCC actions have demonstrated the Commission‘s willingness to crack down on service providers who do not comply with filing regulations. The Commission has imposed several fines in excess of one hundred thousand dollars ($100,000.00) against entities that have failed to comply with “reporting” regulations, including USF filings and CPNI Certifications.Additionally, in recent Orders, the FCC has reiterated that it will continue to aggressively pursue enforcement of all Commission Rules. Hence filing the current Carrier Report is of the utmost importance.

If you have any further questions or concerns about the FCC’s PIU filing obligations, please contact Jonathan Marashlian at: jsm@commlawgroup.com or 703-714-1313.