On June 29, 2017, the FCC released an Order (“Order”) affirming that its customer proprietary network information (“CPNI”) rules governing govern the privacy obligations of telecommunications carriers and interconnected VoIP providers, are again in effect. 

Consequently, telecommunications carriers and interconnected VoIP providers must again comply with the FCC’s annual compliance certification requirements and CPNI recordkeeping requirements.  

Background.   Under Section 222 of the Communications Act, telecommunications carriers, and, since 2007, interconnected VoIP providers, are required to protect the confidentiality of “customer proprietary network information,” commonly known as “CPNI.”  

In its 2015 Open Internet Order, the FCC reclassified broadband Internet access services as a Title II telecommunications service, subjecting broadband providers to a variety of common carrier obligations under the Communications Act, including Section 222.  Later, in its 2016 Privacy Order, the FCC adopted a new and expansive interpretation of Section 222 requirements and applied it to broadband Internet access service providers and other telecommunications services, including legacy voice and interconnected VoIP.  Consistent with the FCC’s desire to “harmonize” its privacy rules, the 2016 Privacy Order adopted a single set of governing definitions and obligations and also eliminated several privacy obligations imposed on voice and interconnected VoIP services, including the requirement to file an annual CPNI certification. 

This past March, however, President Trump signed into law a congressional Joint Resolution pursuant to the Congressional Review Act repealing the new broadband and telecommunications privacy rules adopted last October by the FCC. 

Reinstated CPNI Requirements.  The FCC’s recent ministerial Order affirms that the FCC rules governing CPNI that were in effect prior to their amendment by the 2016 Privacy Order are again in effect, including the CPNI recordkeeping and annual reporting requirements.  

Annual Compliance Certification.  Once again, telecommunications carriers and interconnected VoIP providers must have an officer submit an annual compliance certificate by March 1^st of each year (covering the prior year).  This annual compliance certificate must be signed by a corporate officer, stating with personal knowledge that the provider has established and followed operating procedures adequate to ensure compliance with the FCC’s CPNI rules.  The provider must also include, if applicable, an explanation of any actions taken against data brokers and a summary of all customer complaints concerning any unauthorized release of CPNI received in the past year. 

The annual certificate for 2017 must be filed with the Enforcement Bureau on or before March 1, 2018 in EB Docket No. 06-36.

Recordkeeping Requirements.  Telecommunications carriers and Interconnected VoIP providers must maintain records, for at least one year, of their own and affiliates’ sales and marketing campaigns that use their customers’ CPNI and all instances where CPNI was disclosed or provided to third parties, or where third parties were allowed access to CPNI. The records must include a description of each campaign, the specific CPNI that was used, and what products and services were offered as part of the campaign. 

Effect on Broadband Providers.  The FCC’s Order also affirmed that the reinstated CPNI rules will not apply to broadband Internet access services.  Nonetheless, broadband service providers remain subject to Section 222 at this time, and should follow the Enforcement Bureau’s 2015 Guidance explaining how the FCC would enforce Section 222 absent any effective regulations.

Effective Date.  As the FCC is simply recognizing the effect of the Joint Resolution, the Order will be effective immediately upon publication in the Federal Register.

If you have any questions regarding CPNI, filing the annual certification or privacy requirements in general, please contact Bruce Beard at (314) 394-1535 or bbeard@cinnamonmueller.com or Scott Friedman at (312) 372-3930 or sfriedman@cinnamonmueller.com.

Copyright Forms and Fees Due by August 29, 2017 

Cable operators must file with the U.S. Copyright Office their Statement of Accounts (Form SA1-2 or SA3) and pay any royalty fees due for the January 2017 – June 2017 accounting period by August 29, 2017. The following forms apply:

• SA1-2 Short Form. For use by cable systems with semiannual gross receipts of less than $527,600. 
• SA3 Long Form. For use by cable systems with semiannual gross receipts of $527,600 or more.

Cable operators may now electronically sign and submit their SOAs.   Excel-based SA1-2E Short Form and SA3E Long Form, along with additional instructions regarding the forms, are available for download on the Copyright Office’s Section 111 webpage.  Cable operators may choose to continue to use the paper-based forms as well.

Copyright filings must be accompanied by a filing fee in addition to the royalty payment.  The filing fee is calculated based on the type of form filed:  

Operators must also remit the royalty fee and filing fee in a single electronic payment.  If you have any questions about copyright forms or fees, please contact Bruce Beard at (314) 394-1535 or bbeard@cinnamonmueller.com.

FCC Form 477 Due September 1, 2017 

            The next Form 477 is due September 1, 2017.  Telephone, broadband, and interconnected VoIP providers must report information about broadband connections and local telephone service as of June 20, 2017.  

As a reminder, Form 477 must be filed online through the FCC's filing interface.  Instructions for filers can be found here.  Filers can also review a brief summary of the Form 477 changes made in 2014 on the FCC’s website. 

If you have any questions about Form 477, please contact Scott Friedman at (312) 372-3930 or sfriedman@cinnamonmueller.com.