Determined to curb the issue of illegal robocalls and promote compliance and network security, the FCC released a draft Second Report and Order and Second Further Notice of Proposed Rulemaking addressing numbering policies yesterday. The document will be considered at the FCC September 21 Open Meeting, and parties seeking changes to the draft must submit comments before September 14. Assuming adoption of the proposed item, further comments will be solicited by the FCC.
Background
Since VOIP providers were allowed to obtain phone numbers directly from the Numbering Administrator in 2015, the Federal Communications Commission (the “FCC”) found that the abundance of interconnected VoIP providers made the network more vulnerable to bad actors than are other types of voice service providers. Since then, Congress and the FCC have made efforts to reduce improper access to phone numbers by potential illegal robocallers and to ensure that interconnected VoIP providers having direct access to numbers comply with existing legal requirements, do not facilitate illegal robocalls, pose national security risks, or evade or abuse intercarrier compensation requirements.
By adopting the Second Report and Order (“Order”), the FCC seeks to modify and strengthen its rules to reduce virtually unlimited access to telephone numbers by potential perpetrators of illegal robocalls, adopt important guardrails to protect national security and law enforcement, safeguard the nation’s finite numbering resources, reduce the opportunity for regulatory arbitrage, and further promote public safety.
The Order aims to:
- Require applicants seeking direct access to numbering resources:
- to make robocall-related certifications to help ensure compliance with our rules targeting illegal robocalls;
- to disclose and keep current information about their ownership, including foreign ownership, with the FCC and the states (foreign-owned applicants will be removed from streamlined processing cycle);
- to certify to their compliance with other Commission rules applicable to interconnected VoIP providers, to bolster awareness and compliance with such rules, including certain public safety and access stimulation rules,
- to provide evidence that they have complied with the obligations to file forms 477 and 499, and any successor filing obligations, when filing a direct access application; and
- to comply with any general state laws and registration requirements that are applicable to other businesses obtaining numbers in the states, such as LECs.
- to make robocall-related certifications to help ensure compliance with our rules targeting illegal robocalls;
The certifications carry the weight of the FCC’s requirement that an officer or responsible official of the company attests under penalty of perjury that all statements in the application are true and accurate.
- Codify the Wireline Competition Bureau’s direct access to numbering resources application review, application rejection (for example, if state authorities notify the FCC the applicant violates state laws or if the Bureau determines granting of the application would not be in the public interest), and authorization revocation processes. The Bureau would be required to announce rejection decisions, the reasons for the rejection, and whether they are with or without prejudice, via public notice.
- Direct the North American Numbering Council to study number use, resale, and reclamation to inform potential future Commission action in furtherance of its public interest goals. Note that the FCC has few restrictions on the use of POTS numbers, including by overseas call centers or the ability to obtain large blocks of numbers, even in rural Area Codes and that the NANC may well propose that the FCC’s rules against warehousing, hoarding or bartering toil free numbers be extended to POTS numbers. Similarly, the NANC could propose limitations on the use of domestic numbers overseas, such as those imposed by the UK and other nations. We expect state utility commissions to urge strong limitations on POTS numbers.
In its Second Further Notice of Proposed Rulemaking (“NPRM”) issued together with the Order, the FCC will seek comment on proposals to further increase Commission oversight of entities with access to numbers by:
- requiring existing direct access authorization holders whose authorizations predate the new application requirements to submit the new certifications, acknowledgments, and disclosures adopted in the Second Report and Order;
- requiring direct access applicants to disclose a list of states in which they seek to provide initial service; and
- requiring number resellers with direct access authorizations to obtain the same direct access application certifications, acknowledgments, and disclosures from their indirect access recipient partners.
The Order and NPRM will be considered at the FCC September 21 Open Meeting. We encourage parties interested in submitting changes to the draft to submit comments before the September 14 deadline.
NEED HELP WITH ROBOCALL MITIGATION, COMPLIANCE AND LITIGATION?
The CommLaw Group Can Help!
Given the complexity and evolving nature of the FCC’s rules, regulations and industry policies & procedures around Robocall Mitigation and Compliance issues (e.g., Stir/Shaken, TRACED Act, FCC Rules & Regulations, US Telecom Industry group, ATIS, NECA, VoIP Numbering Waivers, Know Your Customer and the private sector ecosystem), as well as the increased risk of business disputes, consumer protection enforcement by state attorneys general, and even civil litigation, and anticipating the potential torrent of client questions and concerns, The CommLaw Group formed a “Robocall Mitigation Response Team” to help clients (old and new) tackle their unique responsibilities.
CONTACT US NOW, WE ARE STANDING BY TO GUIDE YOUR COMPANY’S COMPLIANCE EFFORTS
Michael Donahue — Tel: 703-714-1319 / E-mail: mpd@CommLawGroup.com
Rob Jackson – Tel: 703-714-1316 / E-mail: rhj@CommLawGroup.com
Ron Quirk – Tel: 703-714-1305 / E-mail: req@CommLawGroup.com
