Obtaining a 214 License
What is a Section 214 License?
What does Section 214 require?
Is a 214 License necessary for interconnected VoIP service providers?
Why is Section 214 important?
How can the Commpliance group assist telecommunications providers with Section 214 applications?
What is a Section 214 License?
Telecommunications service providers who are defined as “common carriers” under federal law must obtain a section 214 license before providing service between the United States and a foreign country. Under the federal Telecommunications Act, a common carrier is defined as a company that provides telecommunications for hire, or holds itself out to the public as being able to provide services for hire. All telecommunications service providers, including facilities-based carriers, resellers, prepaid calling card providers, and many wireless service providers, offering services to the public between the United States and foreign points must obtain a certificate of authority under section 214. In short, a section 214 authorization is a license to offer international telecommunications service.
What does Section 214 require?
Service providers are free to provide telecommunications services between the United State and foreign points once the FCC grants a 214 License. However, regulatory compliance obligations do not end here. The FCC has enacted several ongoing compliance obligations for all licensees, including the requirement to:
• Notify the FCC of any changes to their original 214 applications. Service providers are responsible for the information for any updates that should have been filed under the Commission’s rules.
• File Annual Reports with the FCC. Service providers must file annual reports to the FCC detailing actual traffic and revenue data for every service provided. Facilities-based carriers and resellers are also required to file detailed quarterly reports.
The FCC also imposes certain public disclosure requirements on licensees. Specifically, non-dominant resellers must make information concerning rates, terms and conditions available to the public. Carriers must also maintain this information for submission to the FCC and state utilities commissions upon request.
Is a 214 License necessary for interconnected VoIP service providers?
Because of the regulatory uncertainty surrounding the regulation of interconnected VoIP services, the FCC has yet to rule on whether interconnected VoIP service providers are subject to Section 214 of the Federal Telecommunications Act. However, due the increasing regulation of interconnected VoIP providers, there is a significant chance that the FCC will find that interconnected VoIP providers are subject to 214 licensing requirements. 214 Licenses can also be beneficial for interconnected VoIP providers who interconnected with foreign service providers. Because of this, many interconnected VoIP service providers find it beneficial to obtain a 214 License in order to provide international service and comply with Federal Universal Service Fund ("USF") and other regulatory compliance obligations.
The 214 License is one of the core regulatory hurdles a new provider must overcome before entering the telecommunications marketplace. Since international telecommunications licensing is heavily monitored not just by the FCC, but other branches of the government, successfully obtaining a 214 License can be a complex process. It is therefore important that providers seeking this authority fully understand the application process and associated compliance obligations.
Federal law prohibits companies from offering or advertising international telecommunications services without first obtaining a 214 License. The FCC is authorized to fine providers which operate without a license up to $130,000 for each day of operation. Further, failure to abide by reporting and compliance requirements following issuance of a 214 License risks revocation of a service provider’s 214 license.
The FCC has suggested that it will pay careful attention to future 214 Licenses and strictly enforce the compliance and reporting requirements placed on licensees. Therefore, all telecommunications service providers must carefully consider the implications of inattention to Section 214 rules. Providers must always seek FCC approval before provisioning service to international destinations. Additionally, licensees must receive FCC approval for any transfers of control or other changes in business status. Providers must also regularly update any information in their 214 applications and comply with reporting and disclosure requirements.
How can the Commpliance group assist telecommunications providers with Section 214 applications?
The Commpliance Group has over two decades worth of experience assisting international telecommunications service providers obtain 214 Licenses from the FCC. Our team of dedicated regulatory consultants has supported both large, multi-national telecommunications companies and small, start-up service providers with licensing and compliance obligations. We understand that many domestic and international companies entering the U.S. telecommunications market are cost conscious and practical in their approach to regulatory matters.
For this reason The Commpliance Group offers low-cost certification and licensing for all telecommunications services. Our primary goal is to develop a lifelong relationship with our clients. We see licensing as a valuable first step in this process. For more information on a 214 License pricing, please check out the FCC licensing page.
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