Goto Section: 54.312 | 54.314 | Table of Contents
FCC 54.313
Revised as of September 1, 2021
Goto Year:2020 |
2022
§ 54.313 Annual reporting requirements for high-cost recipients.
Link to an amendment published at 85 FR 13797 , Mar. 10, 2020.
(a) Any recipient of high-cost support shall provide the following:
(1) Certification that the carrier is able to function in emergency
situations as set forth in § 54.202(a)(2);
(2) A certification 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;
(3) A certification that the pricing of a service that meets the
Commission's broadband public interest obligations is no more than the
applicable benchmark to be announced annually in a public notice issued
by the Wireline Competition Bureau, or is no more than the
non-promotional price charged for a comparable fixed wireline service
in urban areas in the states or U.S. Territories where the eligible
telecommunications carrier receives support;
(4) 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;
(5) 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.
(6) 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, the requirements in paragraphs (e)(1) and (2) of this
section apply to recipients of Phase II, Remote Areas Fund, Uniendo a
Puerto Rico Fund Stage 2 fixed support, and Connect USVI Fund Stage 2
fixed support:
(1) Any price cap carrier that elects to receive Connect America Phase
II model-based support shall provide:
(i) On July 1, 2016 a list of the geocoded locations already meeting
the § 54.309 public interest obligations at the end of calendar year
2015, and the total amount of Phase II support, if any, the price cap
carrier used for capital expenditures in 2015.
(ii) On July 1, 2017 and every year thereafter ending July 1, 2021, the
following information:
(A) The number, names, and addresses of community anchor institutions
to which the eligible telecommunications carrier newly began providing
access to broadband service in the preceding calendar year;
(B) The total amount of Phase II support, if any, the price cap carrier
used for capital expenditures in the previous calendar year; and
(C) A certification that it bid on category one telecommunications and
Internet access services in response to all FCC Form 470 postings
seeking broadband service that meets the connectivity targets for the
schools and libraries universal service support program for eligible
schools and libraries (as described in § 54.501) located within any area
in a census block where the carrier is receiving Phase II model-based
support, and that such bids were at rates reasonably comparable to
rates charged to eligible schools and libraries in urban areas for
comparable offerings.
(2) Any recipient of Phase II, Remote Areas Fund, Uniendo a Puerto Rico
Fund Stage 2 fixed, or Connect USVI Fund Stage 2 fixed support awarded
through a competitive bidding or application process shall provide:
(i) Starting the first July 1st after receiving support until the July
1st after the recipient's support term has ended:
(A) The number, names, and addresses of community anchor institutions
to which the eligible telecommunications carrier newly began providing
access to broadband service in the preceding calendar year;
(B) The total amount of support, if any, the recipient used for capital
expenditures in the previous calendar year; and
(C) A certification that it bid on category one telecommunications and
Internet access services in response to all FCC Form 470 postings
seeking broadband service that meets the connectivity targets for the
schools and libraries universal service support program for eligible
schools and libraries (as described in § 54.501) located within any area
in a census block where the carrier is receiving support awarded
through auction, and that such bids were at rates reasonably comparable
to rates charged to eligible schools and libraries in urban areas for
comparable offerings.
(ii) Starting the first July 1st after receiving support until the July
1st after the recipient's penultimate year of support, a certification
that the recipient has available funds for all project costs that will
exceed the amount of support that will be received for the next
calendar year.
(iii) Starting the first July 1st after meeting the final service
milestone in § 54.310(c) of this chapter until the July 1st after the
Phase II recipient's support term has ended, a certification that the
Phase II-funded network that the Phase II auction recipient operated in
the prior year meets the relevant performance requirements in § 54.309
of this chapter, or that the network that the Remote Areas Fund
recipient operated in the prior year meets the relevant performance
requirements for the Remote Areas Fund.
(f) In addition to the information and certifications in paragraph (a)
of this section, any rate-of-return carrier shall provide:
(1) On July 1, 2016, a list of the geocoded locations already meeting
the § 54.309 public interest obligations at the end of calendar year
2015, and the total amount of Phase II support, if any, the price cap
carrier used for capital expenditures in 2015.
(i) If the rate-of-return carrier is receiving support pursuant to
subparts K and M of this part, a certification that it is taking
reasonable steps to provide upon reasonable request broadband service
at actual speeds of at least 25 Mbps downstream/3 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; if the rate-of-return carrier receives CAF-ACAM support, a
certification that it is meeting the relevant reasonable request
standard; or if the rate-of-return carrier is receiving Alaska Plan
support pursuant to § 54.306, a certification that it is offering
broadband service 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, and at
speeds committed to in its approved performance plan to the locations
it has reported pursuant to § 54.316(a), subject to any limitations due
to the availability of backhaul as specified in paragraph (g) of this
section.
(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; and
(iii) A certification that it bid on category one telecommunications
and Internet access services in response to all reasonable requests in
posted FCC Form 470s seeking broadband service that meets the
connectivity targets for the schools and libraries universal service
support program for eligible schools and libraries (as described in
§ 54.501) within its service area, and that such bids were at rates
reasonably comparable to rates charged to eligible schools and
libraries in urban areas for comparable offerings.
(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.
(3) For rate-of-return carriers participating in the Alaska Plan,
funding recipients must certify as to whether any terrestrial backhaul
or other satellite backhaul became commercially available in the
previous calendar year in areas that were previously served exclusively
by performance-limiting satellite backhaul. To the extent that such new
terrestrial backhaul facilities are constructed, or other satellite
backhaul become commercially available, or existing facilities improve
sufficiently to meet the relevant speed, latency and capacity
requirements then in effect for broadband service supported by the
Alaska Plan, the funding recipient must provide a description of the
backhaul technology, the date at which that backhaul was made
commercially available to the carrier, and the number of locations that
are newly served by the new terrestrial backhaul or other satellite
backhaul. Within twelve months of the new backhaul facilities becoming
commercially available, funding recipients must certify that they are
offering broadband service 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. Funding recipients' minimum speed deployment obligations will be
reassessed as specified by the Commission.
(4) If applicable, the name of any cost consultant and cost consulting
firm, or other third-party, retained to prepare financial and
operations data disclosures submitted to the National Exchange Carrier
Association (NECA), the Administrator or the Commission pursuant to
subpart D, K, or M of this part.
(5) Rate-of-return carriers receiving support pursuant to the
Alternative Connect America Model or the Alaska Plan, that are not
otherwise required to file count data pursuant to § 54.903(a)(1) of this
subpart, must file the line count data required by § 54.903(a)(1).
(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
Connect America Fund, 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. These obligations may be modified for carriers participating
in the Alaska Plan.
(h) In their annual reporting due by July 1, 2019 and July 1, 2020, 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 regulated fees, to the
extent the sum of those rates and fees are below $18, and the number of
lines for each rate specified. Carriers shall report lines and rates in
effect as of June 1. For purposes of this subsection, state regulated
fees shall be limited to state subscriber line charges, state universal
service fees and mandatory extended area service charges.
(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. (1) 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
annually by July 1 of each year. Eligible telecommunications carriers
that file their reports after the July 1 deadline shall receive a
reduction in support pursuant to the following schedule:
(i) An eligible telecommunications carrier that files after the July 1
deadline, but by July 8, will have its support reduced in an amount
equivalent to seven days in support;
(ii) An eligible telecommunications carrier that files on or after July
9 will have its support reduced on a pro-rata daily basis equivalent to
the period of non-compliance, plus the minimum seven-day reduction.
(2) Grace period. An eligible telecommunications carrier that submits
the annual reporting information required by this section after July 1
but before July 5 will not receive a reduction in support if the
eligible telecommunications carrier and its holding company, operating
companies, and affiliates as reported pursuant to paragraph (a)(8) of
this section have not missed the July 1 deadline in any prior year.
(k) This section does not apply to recipients that solely receive
support from Phase I of the Mobility Fund.
(l) In addition to the information and certifications in paragraph (a)
of this section, any competitive eligible telecommunications carrier
participating in the Alaska Plan must provide the following:
(1) Funding recipients that have identified in their approved
performance plans that they rely exclusively on satellite backhaul for
a certain portion of the population in their service area must certify
as to whether any terrestrial backhaul or other satellite backhaul
became commercially available in the previous calendar year in areas
that were previously served exclusively by satellite backhaul. To the
extent that new terrestrial backhaul facilities are constructed or
other satellite backhaul become commercially available, the funding
recipient must:
(i) Provide a description of the backhaul technology;
(ii) Provide the date on which that backhaul was made commercially
available to the carrier;
(iii) Provide the number of the population within their service area
that are served by the newly available backhaul option; and
(iv) To the extent the funding recipient has not already committed to
providing 4G LTE at 10/1 Mbps to the population served by the newly
available backhaul by the end of the plan term, submit a revised
performance commitment factoring in the availability of the new
backhaul option no later than the due date of the Form 481 in which
they have certified that such backhaul became commercially available.
(2) [Reserved]
(m) Any price cap carrier or fixed competitive eligible
telecommunications carrier that elects to continue receiving support
pursuant to § 54.312(d) or § 54.307(e)(2)(iii) shall provide
certifications, starting July 1, 2020 and for each subsequent year they
receive such support, that all such support the company received in the
previous year was used to provide voice service throughout the
high-cost and extremely high-cost census blocks where they continue to
have the federal high-cost eligible telecommunications carrier
obligation to provide voice service pursuant to § 54.201(d) at rates
that are reasonably comparable to comparable offerings in urban areas.
Any price cap carrier or fixed competitive eligible telecommunications
carrier that solely receives support pursuant to § 54.312(d)
or§ 54.307(e)(2)(iii) in its designated service area shall not be
subject to reporting requirements in any other paragraphs in this
section for such support.
(n) Recipients of Uniendo a Puerto Rico Fund Stage 2 fixed and mobile
support and Connect USVI Fund Stage 2 fixed and mobile support shall
certify that such support was not used for costs that are (or will be)
reimbursed by other sources of support, including Federal or local
government aid or insurance reimbursements; and that support was not
used for other purposes, such as the retirement of company debt
unrelated to eligible expenditures, or other expenses not directly
related to network restoration, hardening, and expansion consistent
with the framework of the Uniendo a Puerto Rico Fund or Connect USVI
Fund, respectively. Recipients of fixed and mobile support from Stage 2
of the Uniendo a Puerto Rico Fund and the Connect USVI Fund shall
certify that they have conducted an annual review of the documentation
required by § 54.1515(a) through (c) to determine the need for and to
implement changes or revisions to disaster preparation and recovery
documentation.
(o) Recipients of Uniendo a Puerto Rico Fund or Connect USVI Fund Stage
2 mobile support shall certify that they are in compliance with all
requirements in this part for receipt of such support to continue
receiving Stage 2 mobile disbursements.
[ 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; 80 FR 4477 , Jan. 27,
2015; 81 FR 24341 , Apr. 25, 2016; 81 FR 44449 , July 7, 2016; 81 FR 69713 , Oct. 7, 2016; 82 FR 15450 , Mar. 28, 2017; 82 FR 39969 , Aug. 23,
2017; 83 FR 18964 , May 1, 2018; 84 FR 4732 , Feb. 19, 2019; 84 FR 8624 ,
Mar. 11, 2019; 84 FR 19876 , May 7, 2019; ; 85 FR 59963 , Nov. 7, 2019; 85 FR 75819 , Nov. 25, 2020]
Effective Date Notes: 1. At 77 FR 14302 , Mar. 9, 2012, § 54.313(a)(9)
introductory text and (f)(2) were revised. 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(e)(1), (e)(2), and (e)(3)
introductory text were revised. 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.
3. At 80 FR 4476 , Jan. 27, 2015, § 54.313 (a)(12) was added and (e) was
revised. These paragraphs contain information collection and record
keeping requirements and will not become effective until approval has
been given by the Office of Management and Budget.
4. At 85 FR 13797 , Mar. 10, 2020, § 54.313 was amended by revising
paragraphs (e) introductory text, (e)(2) introductory text and
(e)(2)(iii). These paragraphs have a delayed effective date. For the
convenience of the user, the revised text is set forth as follows:
§ 54.313 Annual reporting requirements for high-cost recipients.
* * * * *
(e) In addition to the information and certifications in paragraph (a)
of this section, the requirements in paragraphs (e)(1) and (2) of this
section apply to recipients of Phase II, Rural Digital Opportunity
Fund, Uniendo a Puerto Rico Fund Stage 2 fixed support, and Connect
USVI Fund Stage 2 fixed support:
* * * * *
(2) Any recipient of Phase II, Rural Digital Opportunity Fund, Uniendo
a Puerto Rico Fund Stage 2 fixed, or Connect USVI Fund Stage 2 fixed
support awarded through a competitive bidding or application process
shall provide:
* * * * *
(iii) Starting the first July 1st after meeting the final service
milestone in § 54.310(c) or § 54.802(c) of this chapter until the July
1st after the Phase II recipient's or Rural Digital Opportunity Fund
recipient's support term has ended, a certification that the Phase
II-funded network that the Phase II auction recipient operated in the
prior year meets the relevant performance requirements in § 54.309 of
this chapter, or that the network that the Rural Digital Opportunity
Fund recipient operated in the prior year meets the relevant
performance requirements in § 54.805 for the Rural Digital Opportunity
Fund.
5. At 85 FR 75819 , Nov. 25, 2020, § 54.313 was amended by revising
paragraph (n). This paragraph has a delayed effective date, the revised
text is set forth to read as follow.
§ 54.313 Annual reporting requirements for high-cost recipients.
(n) In addition to the information and certifications in paragraph (a)
of this section, a mobile competitive eligible telecommunications
carrier receiving legacy high-cost support pursuant to § 54.307(e)(5),
(e)(6), or (e)(7) shall certify whether it used any support pursuant to
§ 54.207(f), and if so, whether it used such support in compliance with
§ 54.7.
Goto Section: 54.312 | 54.314
Goto Year: 2020 |
2022
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