On September 23, 2013, the FCC released an Order adopting a Consent Decree with Lightyear Network Solutions, LLC (“Lightyear”) terminating and resolving an investigation by the FCC’s Enforcement Bureau into whether Lightyear violated various regulatory fee and reporting obligations.  Specifically, the investigation looked into Lightyear’s required contributions to the Universal Service Fund (“USF”), Telecommunications Relay Service (“TRS”) Fund, and North American Numbering Plan and Local Number Portability administration.  As part of the Consent Decree, Lightyear will make a voluntary contribution of $475,000 to the U.S. Treasury.

Lightyear is based in Kentucky and provides local and long distance, interconnected VoIP, DSL, wireless, and prepaid calling card services.   In July 2008, the Universal Service Administrative Company requested that the Enforcement Bureau investigate Lightyear for potential enforcement action, alleging that Lightyear had failed to comply with the FCC's USF contribution and Form 499 reporting rules.

The Enforcement Bureau subsequently investigated and issued a Letter of Inquiry (“LOI”) to Lightyear in 2008, and again in 2012 before entering into settlement discussions with Lightyear.  Those negotiations led to the settlement.  The settlement includes the $475,000 voluntary payment and acknowledges that, “[a]s of the Effective Date [of the Consent Decree], Lightyear has paid all invoiced amounts to the USF, TRS Fund, and cost recovery mechanisms for NANP and LNP administration and all invoiced regulatory fees”.

In addition to the $475,000 voluntary payment, Lightyear agreed to a compliance plan that will govern its – and any successors’ – operations over the next thirty-six months.  Under the terms of the Consent Decree, Lightyear must designate a compliance officer, establish standard operating procedures related to federal contribution and regulatory reporting obligations, develop and distribute a detailed compliance manual, train its employees, and file periodic compliance reports with the FCC describing and certifying its compliance efforts.

            This order serves as an important reminder that USF and Form 499 enforcement is a high priority for the FCC.  Pursuant to the Communications Act and FCC rules, telecommunications service providers that provide interstate telecommunications services, including interconnected VoIP, are required to file annual (Form 499-A) and quarterly (Form 499-Q) Telecommunications Reporting Worksheets and contribute to the USF and TRS funds.  In addition, telecommunications service providers must contribute to the costs of establishing numbering administration and local number portability.  FCC rules also obligate interstate telecommunications carriers and interconnected VoIP providers to pay regulatory fees, and this entity’s apparent failure to pay those fees undoubtedly contributed to the level of the “voluntary payment” agreed to in the consent decree.  

If you have any questions regarding Forms 499-A, 499-Q, the Universal Service Fund or FCC regulatory fees in general, please contact Bruce Beard at (314) 394-1535 or bbeard@cinnamonmueller.com.

FCC Reminds Video Providers That All Emergency Information Must be

Accessible to Hearing- and Vision-Impaired Viewers

On September 23, 2013 the FCC released its annual notice reminding video programming distributors of their obligation to make emergency information accessible to individuals with hearing or vision impairments.  These rules apply to all distributors of video programming – including cable operators. There are no exemptions.  A quick review of the rules follows.

            Emergency Information.  The rules apply to all information about a current emergency, including the areas affected by the emergency, evacuation orders, evacuation routes, approved shelters, road closures, and other key information.  The types of emergencies covered include tornadoes, hurricanes, floods, widespread fires, heavy snows, and warnings and watches of imminent weather changes.

The rules apply to emergency information in the geographic area affected by an emergency and also in areas where people affected by the emergency might evacuate to or take shelter in.

            Accessible to Individuals with Hearing Impairments.  Emergency information that is provided in the audio portion of programming must be accessible to people with hearing disabilities through closed captioning or other visual presentation, such as screen crawls.

            Distributors must make sure that emergency information does not block closed captioning. Also, closed captioning must not block emergency information that is provided by screen crawl or other visual means.

Accessible to Individuals with Vision Impairments.  Emergency information that is provided visually during a regularly scheduled newscast, or a newscast that interrupts regular programming, must be accessible to people with vision impairments.  The FCC expects that distributors will aurally describe the emergency information in the main audio stream. For example, if a distributor shows an on-screen map of evacuation routes, it must be accompanied by a voice-over describing the routes.

Emergency information that is provided visually during programming that’s not either a regularly scheduled newscast or a newscast that interrupts regular programming must be accompanied with an aural tone to inform visually impaired people tune to another information source like the radio.  For example, if emergency information is provided via a screen crawl, the screen crawl must accompany an aural tone.

Distributors must make sure that all emergency information provided aurally, including the aural tone, is passed through to subscribers.  The aural information must supersede all other programming in the secondary audio stream, including video description and foreign language translation.

            Pass-through of Accessible Emergency Information.  These rules apply to broadcasters too. Accordingly, emergency information in broadcast programming should be accessible.  In that case, cable operators and other distributors should ensure that emergency information is passed through in accessible formats.  Distributors are not responsible for programming that is “by law not subject to their editorial control,” including broadcast programming distributed by cable operators.

            Enforcement.  Consumers may file complaints with the FCC to allege violations of the emergency information accessibility rules.  The FCC also encourages consumers to contact distributors directly with questions or complaints about the accessibility of emergency information.

To support this, the FCC requires distributors to maintain contact information in its Video Programming Distributor Registry.  You can check to see if your contact information is current, or provide your contact information, here.  (Note: This link won’t work until the FCC re-opens for business after the government shutdown ends.)

If you have any questions about the emergency information accessibility requirements, please contact Scott Friedman or Jake Baldwin at (312) 372-3930 or sfriedman@cinnamonmueller.com or jbaldwin@cinnamonmueller.com.