§ 54.313   Annual reporting requirements for high-cost recipients.

   (a) Any recipient of high-cost support shall provide the following,
   with the information and data required by paragraphs (a)(1) through (7)
   of this section separately broken out for both voice service and
   broadband service:

   (1) A progress report on its five-year service quality improvement plan
   pursuant to § 54.202(a), including maps detailing its progress towards
   meeting its plan targets, an explanation of how much universal service
   support was received and how it was used to improve service quality,
   coverage, or capacity, and an explanation regarding any network
   improvement targets that have not been fulfilled in the prior calendar
   year. The information shall be submitted at the wire center level or
   census block as appropriate;

   (2) Detailed information on any outage in the prior calendar year, as
   that term is defined in 47 CFR 4.5, of at least 30 minutes in duration
   for each service area in which an eligible telecommunications carrier
   is designated for any facilities it owns, operates, leases, or
   otherwise utilizes that potentially affect

   (i) At least ten percent of the end users served in a designated
   service area; or

   (ii) A 911 special facility, as defined in 47 CFR 4.5(e).

   (iii) Specifically, the eligible telecommunications carrier's annual
   report must include information detailing:

   (A) The date and time of onset of the outage;

   (B) A brief description of the outage and its resolution;

   (C) The particular services affected;

   (D) The geographic areas affected by the outage;

   (E) Steps taken to prevent a similar situation in the future; and

   (F) The number of customers affected.

   (3) The number of requests for service from potential customers within
   the recipient's service areas that were unfulfilled during the prior
   calendar year. The carrier shall also detail how it attempted to
   provide service to those potential customers;

   (4) The number of complaints per 1,000 connections (fixed or mobile) in
   the prior calendar year;

   (5) Certification that it is complying with applicable service quality
   standards and consumer protection rules;

   (6) Certification that the carrier is able to function in emergency
   situations as set forth in § 54.202(a)(2);

   (7) The company's price offerings in a format as specified by the
   Wireline Competition Bureau;

   (8) The recipient's holding company, operating companies, affiliates,
   and any branding (a "dba," or "doing-business-as company" or brand
   designation), as well as universal service identifiers for each such
   entity by Study Area Codes, as that term is used by the Administrator.
   For purposes of this paragraph, "affiliates" has the meaning set forth
   in section 3(2) of the Communications Act of 1934, as amended;

   (9) Beginning July 1, 2013. To the extent the recipient serves Tribal
   lands, documents or information demonstrating that the ETC had
   discussions with Tribal governments that, at a minimum, included:

   (i) A needs assessment and deployment planning with a focus on Tribal
   community anchor institutions;

   (ii) Feasibility and sustainability planning;

   (iii) Marketing services in a culturally sensitive manner;

   (iv) Rights of way processes, land use permitting, facilities siting,
   environmental and cultural preservation review processes; and

   (v) Compliance with Tribal business and licensing requirements. Tribal
   business and licensing requirements include business practice licenses
   that Tribal and non-Tribal business entities, whether located on or off
   Tribal lands, must obtain upon application to the relevant Tribal
   government office or division to conduct any business or trade, or
   deliver any goods or services to the Tribes, Tribal members, or Tribal
   lands. These include certificates of public convenience and necessity,
   Tribal business licenses, master licenses, and other related forms of
   Tribal government licensure.

   (10) Beginning July 1, 2013. A letter certifying that the pricing of
   the company's voice services is no more than two standard deviations
   above the applicable national average urban rate for voice service, as
   specified in the most recent public notice issued by the Wireline
   Competition Bureau and Wireless Telecommunications Bureau; and

   (11) Beginning July 1, 2013. The results of network performance tests
   pursuant to the methodology and in the format determined by the
   Wireline Competition Bureau, Wireless Telecommunications Bureau, and
   Office of Engineering and Technology.

   (b) In addition to the information and certifications in paragraph (a)
   of this section:

   (1) Any recipient of incremental Connect America Phase I support
   pursuant to § 54.312(b) and (c) shall provide:

   (i) In its next annual report due after two years after filing a notice
   of acceptance of funding pursuant to § 54.312(b) and (c), a
   certification that the company has deployed to no fewer than two-thirds
   of the required number of locations; and

   (ii) In its next annual report due after three years after filing a
   notice of acceptance of funding pursuant to § 54.312(b) and (c), a
   certification that the company has deployed to all required locations
   and that it is offering broadband service of at least 4 Mbps downstream
   and 1 Mbps upstream, with latency sufficiently low to enable the use of
   real-time communications, including Voice over Internet Protocol, and
   with usage allowances, if any, associated with a specified price for a
   service offering that are reasonably comparable to comparable offerings
   in urban areas.

   (2) In addition to the information and certifications required in
   paragraph (b)(1) of this section, any recipient of incremental Connect
   America Phase I support pursuant to § 54.312(c) shall provide:

   (i) In its annual reports due after one, two, and three years after
   filing a notice of acceptance of funding pursuant to § 54.312(c), a
   certification that, to the best of the recipient's knowledge, the
   locations in question are not receiving support under the Broadband
   Initiatives Program or the Broadband Technology Opportunities Program
   for projects that will provide broadband with speeds of at least 4
   Mbps/1 Mbps; and

   (ii) In its annual reports due after one, two, and three years after
   filing a notice of acceptance of funding pursuant to § 54.312(c), a
   statement of the total amount of capital funding expended in the
   previous year in meeting Connect America Phase I deployment
   obligations, accompanied by a list of census blocks indicating where
   funding was spent.

   (c) In addition to the information and certifications in paragraph (a)
   of this section, price cap carriers that receive frozen high-cost
   support pursuant to § 54.312(a) shall provide:

   (1) By July 1, 2013. A certification that frozen high-cost support the
   company received in 2012 was used consistent with the goal of achieving
   universal availability of voice and broadband;

   (2) By July 1, 2014. A certification that at least one-third of the
   frozen-high cost support the company received in 2013 was used to build
   and operate broadband-capable networks used to offer the provider's own
   retail broadband service in areas substantially unserved by an
   unsubsidized competitor;

   (3) By July 1, 2015. A certification that at least two-thirds of the
   frozen-high cost support the company received in 2014 was used to build
   and operate broadband-capable networks used to offer the provider's own
   retail broadband service in areas substantially unserved by an
   unsubsidized competitor; and

   (4) By July 1, 2016 and in subsequent years. A certification that all
   frozen-high cost support the company received in the previous year was
   used to build and operate broadband-capable networks used to offer the
   provider's own retail broadband service in areas substantially unserved
   by an unsubsidized competitor.

   (d) In addition to the information and certifications in paragraph (a)
   of this section, beginning July 1, 2013, price cap carriers receiving
   high-cost support to offset reductions in access charges shall provide
   a certification that the support received pursuant to § 54.304 in the
   prior calendar year was used to build and operate broadband-capable
   networks used to offer provider's own retail service in areas
   substantially unserved by an unsubsidized competitor.

   (e) In addition to the information and certifications in paragraph (a)
   of this section, any recipient of CAF Phase II support shall provide:

   (1) In the calendar year no later than three years after notification
   of authorization of CAF Phase II funding, a certification that the
   recipient is providing broadband meeting the requisite public interest
   obligations specified in § 54.309 to 85% of its supported locations.

   (2) In the calendar year no later than five years after notification of
   authorization of CAF Phase II funding, a certification that the
   recipient is providing broadband meeting the requisite public interest
   obligations specified in § 54.309 to 100% of its supported locations.

   (3) In the calendar year after the filing of its initial five-year
   service quality improvement plan, and every year thereafter, a progress
   report on the company's five-year service quality improvement plan,
   including the following information:

   (i) A letter certifying that it is meeting the interim deployment
   milestones as set forth, and that it is taking reasonable steps to meet
   increased speed obligations that will exist for all supported locations
   at the expiration of the five-year term for CAF Phase II funding; and

   (ii) The number, names, and addresses of community anchor institutions
   to which the ETC newly began providing access to broadband service in
   the preceding calendar year.

   (f) In addition to the information and certifications in paragraph (a)
   of this section, any rate-of-return carrier shall provide:

   (1) Beginning July 1, 2015. A progress report on its five-year service
   quality plan pursuant to § 54.202(a) that includes the following
   information:

   (i) A letter certifying that it is taking reasonable steps to provide
   upon reasonable request broadband service at actual speeds of at least
   4 Mbps downstream/1 Mbps upstream, with latency suitable for real-time
   applications, including Voice over Internet Protocol, and usage
   capacity that is reasonably comparable to comparable offerings in urban
   areas as determined in an annual survey, and that requests for such
   service are met within a reasonable amount of time; and

   (ii) The number, names, and addresses of community anchor institutions
   to which the ETC newly began providing access to broadband service in
   the preceding calendar year.

   (2) Privately held rate-of-return carriers only. A full and complete
   annual report of the company's financial condition and operations as of
   the end of the preceding fiscal year.

   (i) Recipients of loans from the Rural Utility Service (RUS) shall
   provide copies of their RUS Operating Report for Telecommunications
   Borrowers as filed with the RUS. Such carriers must make their
   underlying audit and related workpapers and financial information
   available upon request by the Commission, USAC, or the relevant state
   commission, relevant authority in a U.S. Territory, or Tribal
   government, as appropriate.

   (ii) All privately held rate-of-return carriers that are not recipients
   of loans from the RUS and whose financial statements are audited in the
   ordinary course of business must provide either: A copy of their
   audited financial statement; or a financial report in a format
   comparable to RUS Operating Report for Telecommunications Borrowers,
   accompanied by a copy of a management letter issued by the independent
   certified public accountant that performed the company's financial
   audit. A carrier choosing the latter option must make its audit and
   related workpapers and financial information available upon request by
   the Commission, USAC, or the relevant state commission, relevant
   authority in a U.S. Territory, or Tribal government, as appropriate.

   (iii) All other privately held rate-of-return carriers must provide
   either: A copy of their financial statement which has been subject to
   review by an independent certified public accountant; or a financial
   report in a format comparable to RUS Operating Report for
   Telecommunications Borrowers, with the underlying information subjected
   to a review by an independent certified public accountant and
   accompanied by an officer certification that: The carrier was not
   audited in the ordinary course of business for the preceding fiscal
   year; and that the reported data are accurate. If the carrier elects
   the second option, it must make the review and related workpapers and
   financial information available upon request by the Commission, USAC,
   or the relevant state commission, relevant authority in a U.S.
   Territory, or Tribal government, as appropriate.

   (g) Areas with No Terrestrial Backhaul. Carriers without access to
   terrestrial backhaul that are compelled to rely exclusively on
   satellite backhaul in their study area must certify annually that no
   terrestrial backhaul options exist. Any such funding recipients must
   certify they offer broadband service at actual speeds of at least 1
   Mbps downstream and 256 kbps upstream within the supported area served
   by satellite middle-mile facilities. To the extent that new terrestrial
   backhaul facilities are constructed, or existing facilities improve
   sufficiently to meet the relevant speed, latency and capacity
   requirements then in effect for broadband service supported by the CAF,
   within twelve months of the new backhaul facilities becoming
   commercially available, funding recipients must provide the
   certifications required in paragraphs (e) or (f) of this section in
   full. Carriers subject to this paragraph must comply with all other
   requirements set forth in the remaining paragraphs of this section.

   (h) Additional voice rate data. (1) All incumbent local exchange
   carrier recipients of high-cost support must report all of their rates
   for residential local service for all portions of their service area,
   as well as state fees as defined pursuant to § 54.318(e), to the extent
   the sum of those rates and fees are below the rate floor as defined in
   § 54.318, and the number of lines for each rate specified. Carriers
   shall report lines and rates in effect as of June 1.

   (2) In addition to the annual filing, local exchange carriers may file
   updates of their rates for residential local service, as well as state
   fees as defined pursuant to § 54.318(e), on January 2 of each year. If
   a local exchange carrier reduces its rates and the sum of the reduced
   rates and state fees are below the rate floor as defined in § 54.318,
   the local exchange carrier shall file such an update. For the update,
   carriers shall report lines and rates in effect as of December 1.

   (i) All reports pursuant to this section shall be filed with the Office
   of the Secretary of the Commission clearly referencing WC Docket No.
   14-58, with the Administrator, and with the relevant state commissions
   or relevant authority in a U.S. Territory, or Tribal governments, as
   appropriate.

   (j) Filing deadlines. In order for a recipient of high-cost support to
   continue to receive support for the following calendar year, or retain
   its eligible telecommunications carrier designation, it must submit the
   annual reporting information required by this section no later than
   July 1, 2012, except as otherwise specified in this section to begin in
   a subsequent year, and thereafter annually by July 1 of each year.
   Eligible telecommunications carriers that file their reports after the
   July 1 deadline shall receive support pursuant to the following
   schedule:

   (1) Eligible telecommunication carriers that file no later than October
   1 shall receive support for the second, third and fourth quarters of
   the subsequent year.

   (2) Eligible telecommunication carriers that file no later than January
   1 of the subsequent year shall receive support for the third and fourth
   quarters of the subsequent year.

   (3) Eligible telecommunication carriers that file no later than April 1
   of the subsequent year shall receive support for the fourth quarter of
   the subsequent year.

   (k) This section does not apply to recipients that solely receive
   support from the Phase I Mobility Fund.

   [ 76 FR 73873 , Nov. 29, 2011, as amended at  77 FR 14302 , Mar. 9, 2012;
    77 FR 30914 , May 24, 2012;  78 FR 22201 , Apr. 15, 2013;  78 FR 29656 , May
   21, 2013;  78 FR 3843 , Jan. 17, 2013;  78 FR 38233 , June 26, 2013;  79 FR 11336 , Feb. 28, 2014;  79 FR 39189 , July 9, 2014]

   Effective Date Notes: 1. At  77 FR 14302 , Mar. 9, 2012, § 54.313 was
   amended by revising paragraphs (a)(9) introductory text and (f)(2).
   These paragraphs contain information collection and recordkeeping
   requirements and will not become effective until approval has been
   given by the Office of Management and Budget.

   2. At  79 FR 11336 , Feb. 28, 2014, § 54.313 was amended by revising
   paragraphs (e)(1), (e)(2) and (e)(3) introductory text. These
   paragraphs contain information collection and recordkeeping
   requirements and will not become effective until approval has been
   given by the Office of Management and Budget.

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