TMP Regulatory & Compliance Issues 4 — Questions and Answers
Question 1: What is 'intercarrier compensation' in U.S. telecommunications regulation?
- Payments carriers make to the FCC for spectrum licenses
- The system of payments between carriers for originating, transporting, and terminating calls on each other's networks (Correct answer)
- Compensation paid to consumers for service outages
- Fees collected from carriers to fund universal service
Correct answer: The system of payments between carriers for originating, transporting, and terminating calls on each other's networks
Intercarrier compensation refers to the rates carriers pay each other for exchanging traffic, including access charges and reciprocal compensation.
Question 2: A wireless carrier is applying for a new spectrum license. Which federal environmental review process may be triggered before the FCC can grant the license?
- NEPA (National Environmental Policy Act) review (Correct answer)
- Clean Air Act Section 112 review
- Resource Conservation and Recovery Act audit
- Endangered Species Act Section 10 permit only
Correct answer: NEPA (National Environmental Policy Act) review
FCC spectrum licensing actions that may have significant environmental impact require NEPA review, including assessment of potential effects on historic properties under Section 106 of the NHPA.
Question 3: Under FCC rules, what disclosure must a carrier make annually to demonstrate compliance with CPNI requirements?
- File a CPNI compliance certification with the FCC (Correct answer)
- Publish a CPNI audit report on its public website
- Submit individual customer consent forms to the FCC
- Notify the DOJ of all CPNI access requests
Correct answer: File a CPNI compliance certification with the FCC
Carriers must file an annual CPNI compliance certification with the FCC affirming that their CPNI practices comply with the agency's rules.
Question 4: In telecom regulatory compliance, what does 'forbearance' mean?
- An FCC decision to waive all enforcement actions against a carrier
- The FCC's authority to refrain from applying statutory requirements where enforcement is not necessary in the public interest (Correct answer)
- A carrier's voluntary suspension of a service pending regulatory review
- A congressional mandate to delay implementing new telecom rules
Correct answer: The FCC's authority to refrain from applying statutory requirements where enforcement is not necessary in the public interest
Under Section 10 of the Communications Act, the FCC may forbear from applying any statute or rule if enforcement is unnecessary to protect consumers or competition.
Question 5: Which requirement applies to telecommunications carriers under Section 255 of the Telecommunications Act of 1996?
- Carriers must provide free relay services for deaf customers
- Manufacturers and service providers must make their products and services accessible to people with disabilities (Correct answer)
- Carriers must offer tiered pricing plans for low-income users
- All network equipment must comply with military-grade encryption standards
Correct answer: Manufacturers and service providers must make their products and services accessible to people with disabilities
Section 255 requires that telecommunications equipment and services be designed to be accessible to and usable by individuals with disabilities, where readily achievable.
Question 6: What is the primary regulatory significance of the 'dominant carrier' designation in U.S. telecommunications?
- Dominant carriers pay lower spectrum auction prices
- Dominant carriers face stricter regulatory oversight and must comply with additional reporting and pricing requirements (Correct answer)
- Dominant carriers are exempt from intercarrier compensation rules
- Dominant carriers automatically receive USF subsidies
Correct answer: Dominant carriers face stricter regulatory oversight and must comply with additional reporting and pricing requirements
Carriers classified as dominant (typically those with market power) face heightened FCC oversight, including tariff filing requirements and stricter conduct rules.
Question 7: A telecommunications company is audited and found to be contributing to the Universal Service Fund at an incorrect rate. What is the most likely consequence?
- Automatic license revocation by the FCC
- Required payment of back contributions plus interest and potential forfeiture penalties (Correct answer)
- Criminal prosecution of the company's executives
- Mandatory divestiture of network assets
Correct answer: Required payment of back contributions plus interest and potential forfeiture penalties
Carriers that under-contribute to the USF are required to pay back assessments with interest, and the FCC may impose additional forfeitures for willful violations.
TMP Regulatory & Compliance Issues 4
What is 'intercarrier compensation' in U.S. telecommunications regulation?