Proposed NANPA Fund Contribution Factor of 0.0001047 Announced by FCC (More than 1/5 Higher than Prior Year Factor of 0.0000853)

The FCC’s Wireline Competition Bureau recently announced the proposed North American Numbering Plan (NANP) administration fund size estimate and contribution factor for the fiscal year October 1, 2023, through September 30, 2024 (Fiscal Year 2024). Proper funding of NANP administration ensures that consumers will continue to have access to the numbering resources essential to the provision of new services and technologies. 

The public notice announced a proposed funding requirement of $8,680,044 for Fiscal Year 2024, and a contribution factor of 0.0001047 for the collection from U.S. carriers.  The proposed contribution factor is higher than the contribution factor for the prior fiscal year (0.0000853) because of lower surplus carried over from the prior year, and because of a lower projected revenue contribution base for this year.

Service providers that recoup the cost of annual NANP contributions through a Cost Recovery Surcharge (or an equivalent discretionary surcharge) should take note of the increased regulatory cost and, potentially, factor in the more than 1/5 higher NANP contribution factor to ensure sufficient revenue is collected.  Also, any service provider relying on a discretionary surcharge to recover regulatory, tax and other compliance costs should seek counsel to confirm their pass-through surcharge practices are appropriate and defensible, including a validation of the accounting, thoroughness of consumer disclosures, and reasonableness of any revenue component necessary to account for the variability in annual costs.

For further guidance on the NANP contribution factor announcement, specifically, or Cost Recovery Surcharge practices, generally, please contact one of the Telecommunications Tax & Regulatory Fee Attorneys at The CommLaw Group!