Reminder to clients, the next-scheduled PIU Report to underlying transport providers is due no later than November 15th. This report will cover the Second Quarter of this year (July 1st – September 30th).
Pursuant to Federal Communications Commission (“FCC”) requirements, all prepaid calling card providers must report Percentage of Interstate Usage (“PIU”) factors, and the call volumes on which these factors were calculated, to those carriers from which they purchase transport services.
According to the FCC‘s regulations, filing Transport Provider PIU Reports is a prerequisite to filing the PIU Officer Certification with the FCC (due on December 31th). Therefore, we cannot file the PIU Officer Certification with the FCC unless or until our client has submitted Transport Provider PIU Report(s).
CLIENT ACTION ITEMS:
Generally all prepaid clients should send PIU reports to underlying carriers directly, as PIU reporting is done pursuant to private agreements. Clients who have concerns or questions about the PIU reporting process, or need assistance reporting PIU to underlying carriers can contact Chris Canter at cac@commlawgroup.com or Jonathan Marashlian at jsm@commlawgroup.com.
BACKGROUND INFORMATION:
Prepaid calling card providers must report PIU factors to all carriers from which they purchase transport services. Specifically, a prepaid calling card provider must report:
- Prepaid calling card PIU factors, and
- Call volumes on which these factors were calculated (based on not less than a one-day representative sample).
These factors must be computed separately for originating and terminating traffic on a state-specific basis. If the prepaid calling card provider fails to report the appropriate PIU information to an underlying transport provider in a timely manner, the transport provider may treat the prepaid calling card provider‘s traffic as subject to a 50 percent (50%) default PIU.
Underlying transport providers will use the reported PIU in calculating PIU factors it reports to LECs. Transport providers may disclose the reported PIU to LECs upon request. A transport provider also may audit the PIU reports it receives if it has a reasonable basis to believe that such reports contain inaccurate or misleading data.
Due Dates
Due dates for filing quarterly Transport Provider PIU Reports and FCC Certifications are as follows:
Reporting Period | PIU Report Due | FCC Certification Due |
4th Quarter (Oct 1-Dec31) | February 15 | March 31 |
1st Quarter (Jan 1-Mar 31) | May 15 | June 30 |
2nd Quarter (Apr 1-Jun 30) | August 15 | September 30 |
3rd Quarter (Jul 1-Sept 30) | November 15 | December 31 |
FCC Enforcement
Filing a PIU Report serves as the basis for the PIU Officer Certification. Therefore, in order to comply with the FCC‘s upcoming reporting requirement, all clients must submit PIU Reports to their underlying carriers in a timely manner.
The FCC imposes steep fines against entities that fail to comply with its “reporting” regulations, which includes USF filings, CPNI Certifications, and prepaid calling card provider reports. These FCC fines frequently exceed one hundred thousand dollars ($100,000.00) for a single offence. Examples of recent enforcement actions are available on the FCC‘s website: https://www.fcc.gov/eb/usfc/.
If you have any further questions or concerns about the FCC’s PIU filing obligations, please contact Chris Canter at:cac@commlawgroup.com or 703-714-1308.