Federal Communications Commission	FCC 18-120



Before the
FEDERAL COMMUNICATIONS COMMISSION
WASHINGTON, D.C. 20554


In the Matter of 

Rural Call Completion
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WC Docket No. 13-39

THIRD REPORT AND ORDER AND ORDER

Adopted:  August 13, 2018	Released:  August 15, 2018

By the Commission:


I. INTRODUCTION
1. Across the country, Americans depend on reliable phone service to stay in touch with friends and family, conduct business, and access vital public services.  Although all Americans should have confidence that calls made to or by them will be completed, for those living in rural or remote areas, too often this is not the case.  Whether consumers experience false ring tones, dropped calls, inaccurate caller ID information, or other problems, rural call completion issues can have serious repercussions, potentially impacting quality of life, economic opportunity, and public safety in affected communities. Rural Call Completion, Second Report and Order and Third Further Notice of Proposed Rulemaking, FCC 18-45, (2018) (Second RCC Order or Third RCC FNPRM).
   
2. The actions we take today are the next steps in our ongoing efforts to ensure that calls are indeed completed to all Americans, including those in rural America.  With our initial implementation of the Improving Rural Call Quality and Reliability Act of 2017 Improving Rural Call Quality and Reliability Act of 2017, Pub. L. No. 115-129, 132 Stat 329 (2018) (RCC Act).
 (RCC Act), we adopt rules designed to ensure the integrity of our nation’s telephone network and prevent “unjust or unreasonable discrimination among areas of the United States” in the delivery of telephone service. 47 U.S.C. § 262(c)(2).
  Based on the record before us, and guided by the RCC Act provisions, today we adopt rules to establish a registry for intermediate providers and require intermediate providers to register with the Commission before offering to transmit covered voice communications, as well as further measures to augment and bolster the effectiveness of our call completion rules.   
II. BACKGROUND
3. Second RCC Order.  In the April 2018 Second RCC Order, we required covered providers—entities that select the initial long-distance route for a large number of lines—to monitor the performance of intermediate providers—the entities, other than terminating providers, to which covered providers hand off calls. Second RCC Order, FCC 18-45, para. 12.  As we noted in the Second RCC Order, “[c]all completion problems manifest in a variety of ways—for example, callers may experience false ring tones or busy signals while the called party’s phone may never ring at all; or when a call goes through, one or both parties to a call may be unable to hear the other; or the caller ID may show an inaccurate number; or calls to rural numbers may be significantly delayed.”  Id. at para. 1 (citations omitted).
  Based on this monitoring, covered providers must take “steps reasonably calculated to correct any identified performance problem with the intermediate provider.” Id. at para. 15.
  The Second RCC Order also required covered providers to list a telephone number and email address for a rural call completion technical expert equipped to remedy such concerns. Id. at paras. 36-39.
  Finally, that Order eliminated the rural call completion data reporting requirement established in 2013. See id. at paras. 58-63; Rural Call Completion, Report and Order and Further Notice of Proposed Rulemaking, 28 FCC Rcd 16154, 16164, 16184-85, paras. 19, 65-67 (2013) (First RCC Order).  
  The Second RCC Order became effective June 11, 2018, See Rural Call Completion, 83 Fed. Reg. 21,723 (May 10, 2018); Second RCC Order, FCC 18-45, para. 50.
 and allowed covered providers a six-month transition period to implement the monitoring requirement. See Second RCC Order, FCC 18-45, at para. 50.  Covered providers are required to comply with the monitoring rule by October 17, 2018, and the covered provider point of contact rule, § 64.2113 “will become effective upon announcement in the Federal Register of Office of Management and Budget (OMB) approval and an effective date of the rules.”  Id. at para 123.

4. Third RCC FNPRM and the RCC Act.  In the Further Notice of Proposed Rulemaking (Third RCC FNPRM) accompanying the Second RCC Order, we sought comment on implementing the RCC Act.  The RCC Act directs the Commission to establish an intermediate provider registry, and stipulates that (1) certain intermediate providers must register with the Commission, See 47 U.S.C. § 262(a) (requiring “[a]n intermediate provider that offers or holds itself out as offering the capability to transmit covered voice communications from one destination to another and that charges any rate to any other entity (including an affiliated entity) for the transmission” to register with the Commission and abide by the service quality standards we adopt pursuant to the RCC Act).
 and (2) covered providers may only use registered intermediate providers to transmit covered voice communications. “The term ‘covered voice communication’ means a voice communication (including any related signaling information) that is generated—(A) from the placement of a call from a connection using a North American Numbering Plan resource or a call placed to a connection using such a numbering resource; and (B) through any service provided by a covered provider.”  47 U.S.C. § 262(i)(2).  
  In addition, the RCC Act directs the Commission to establish service quality standards for the transmission of covered voice communications by intermediate providers, and requires intermediate providers to comply with such standards. See generally RCC Act. 
  Among other things, the Third RCC FNPRM proposed to require intermediate providers to register with the Commission within 30 days of Commission establishment of a registry; Third RCC FNPRM, FCC 18-45, at para. 73.
 prohibit covered providers from using any unregistered intermediate providers in the path of a given call; Id. at para. 79.
 hold covered providers responsible for knowing the identity of all intermediate providers in a call path; Id. at para. 81.
 and require intermediate providers to “take reasonable steps abide by certain industry best practices for rural call completion.” Id. at para. 87.  Several commenters request that the Commission address access stimulation schemes in this Order.  See Incompas Reply at 4-6; Inteliquent Reply at 3-9; Inteliquent Comments at 7-8; HD Tandem Comments at 2-4.  Access stimulation issues are outside the scope of this proceeding and thus we do not address them here.  Moreover, we are actively considering these issues in a pending proceeding.  See Updating the Intercarrier Compensation Regime to Eliminate Access Arbitrage, WC Docket No. 18-155, Notice of Proposed Rulemaking, FCC 18-68 (rel. June 5, 2018) (Access Arbitrage NPRM) (available at  https://www.fcc.gov/edocs/search-results?t=quick&fccdaNo=18-68; via the Commission’s Electronic Document Management System (EDOCS) website at https://www.fcc.gov/edocs (by FCC document number, FCC 18-68);  or via the Commission’s Electronic Comment Filing System (ECFS) website at https://www.fcc.gov/ecfs/ (by docket number, WC Docket No. 18-155)).  Comments were filed in this proceeding on July 20, 2018 and replies on August 3, 2018.  See Wireline Competition Bureau Announces Comment Dates for NPRM on Updating the Intercarrier Compensation Regime to Eliminate Access Arbitrage, WC Docket No. 18-155, DA 18-689, Public Notice (rel. July 2, 2018).

III. DISCUSSION
5. As directed by the RCC Act and informed by the record of this proceeding, in this Third Report and Order we establish a registry for intermediate providers and require intermediate providers to register with the Commission before offering to transmit covered voice communications.  In addition, we adopt rules to require covered providers to use only registered intermediate providers to transmit covered voice communications, and we require covered providers to maintain the capability to disclose the identities of any intermediate providers relied on in the call path to the Commission.  We also adopt a narrowly tailored exception to our rules in instances of force majeure.  The RCC Act requires the Commission to promulgate rules establishing service quality standards “[n]ot later than 1 year after the date of enactment,” 47 U.S.C. § 262 (c)(1)(B).  
 or by February 26, 2019.  We accordingly sought comment on proposed service quality standards in the Third RCC FNPRM. See Third RCC FNPRM, FCC 18-45, at paras. 87-95.
  We will address the RCC Act’s service quality requirements in a subsequent Order.
A. Establishment of Intermediate Provider Registry
6. In accordance with the RCC Act, See generally RCC Act.  To “ensure the integrity of the transmission of covered voice communications to all customers in the United States[] and . . . prevent unjust or unreasonable discrimination among areas of the United States in the delivery of covered voice communications,” 47 U.S.C. § 262(c)(2), new section 262 of the Act requires the Commission to establish a publicly available intermediate provider registry on the Commission’s website.  See id. at § 262(d). 
 we adopt our proposal to establish an intermediate provider registry.  We will require intermediate providers to register via a portal on the Commission’s website furnishing the same five categories of information that we proposed in the Third RCC FNPRM: 
(1) the intermediate provider’s business name(s) and primary address; 
(2) the name(s), telephone number(s), email address(es), and business address(es) of the intermediate provider’s regulatory contact and/or designated agent for service of process; 
(3) all business names that the intermediate provider has used in the past; 
(4) the state(s) in which the intermediate provider provides service; and 
(5) the name, title, business address, telephone number, and email address of at least one person as well as the department within the company responsible for addressing rural call completion issues. Third RCC FNPRM, FCC 18-45, at para. 71.

Further, this information will be made publicly available.
7. As explained in the Third RCC FNPRM, the first four categories of information are similar to the Commission’s existing registration requirements for interconnected VoIP and telecommunications carriers in other contexts. Third RCC FNPRM, FCC 18-45, at para. 71 (citing 47 CFR §§ 1.47, 64.1195; FCC Form 499-A Blocks 1, 2).  For example, “a telecommunications carrier that will provide interstate telecommunications service” is required to provide the following information via FCC Form 499-A “under oath and penalty of perjury”:  (1) The carrier’s business name(s) and primary address; (2) The names and business addresses of the carrier's chief executive officer, chairman, and president, or, in the event that a company does not have such executives, three similarly senior-level officials of the company; (3) The carrier’s regulatory contact and/or designated agent; (4) All names that the carrier has used in the past; and (5) The state(s) in which the carrier provides telecommunications service.”  47 CFR § 64.1195 (a)-(c).  The Commission’s rules also require common carriers, interconnected VoIP providers, and non-interconnected VoIP providers to provide the contact information, including “a name, business address, telephone or voicemail number, facsimile number, and, if available, Internet e-mail address,” for service of process purposes.  Such entities are also required to “list any other names by which it is known or under which it does business, and, if the carrier, interconnected VoIP provider, or non-interconnected VoIP provider is an affiliated company, the parent, holding, or management company.”  47 CFR § 1.47(h).
  The record reflects that “the burden to providers arising out of reporting such information is minimal—it requires no more than logging into an account and typing in the most basic information about a company.” NTCA Comments at 2; accord USTelecom Comments at 5.  Unless otherwise noted, all comments and replies cited in this Order are in response to the Third RCC FNPRM.
  With respect to contact information for the person and department responsible for addressing rural call completion issues, we find, based on the record before us, that requiring this information will facilitate inter-provider cooperation to solve and prevent call completion issues. See, e.g., Inteliquent Comments at 5; cf. NTCA/WTA Aug. 28, 2017 Comments at 16 (addressing need for covered provider provision and maintenance of contact information); Sprint Sep. 25, 2017 Reply at 2-3 (asserting that “readily available point of contact information facilitates inter-company efforts to identify and resolve network problems”).
  We also find that this requirement is consistent with Congress’s mandate that our implementing rules ensure the integrity of the transmission of covered voice communications to all customers in the country and prevent unjust or unreasonable discrimination among areas of the United States in the delivery of covered voice communications. See 47 U.S.C. § 262(c)(2).
  The record reflects no opposition to requiring these five information categories.
8. In addition to the five categories of information we proposed, we also require intermediate providers to furnish the name(s), business address, business telephone number(s), and email address for an executive leadership contact, such as the chief executive officer, chief operating officer, or owner(s) of the intermediate provider, or person performing an equivalent function, who directs or manages the entity. Verizon Comments at 4.  
  Verizon expressed concern that delisted intermediate providers could regain registered status by subsequently re-incorporating under other names for the purpose of circumventing Commission removal from the intermediate provider registry. See id.
  To assist in preventing circumvention of our rules, Verizon proposes requiring this additional information, which “is a common requirement across state and foreign corporation registrations, business licensing, and trade licensing,” Id. & n.16 (“For example, to register a new business in Washington, D.C., companies are required to provide ‘[t]he names, titles, home address, and Social Security number of the proprietor, partners, or principal officers (mandatory).’” (quoting D.C. Office of Tax and Revenue, New Business Registration, https://otr.cfo.dc.gov/page/new-business-registration (last visited July 10, 2018)).
 and thus presents no additional burden in furnishing such existing information to the Commission.  We agree with Verizon that requiring this additional information will “provide the Commission . . . additional visibility into the individuals that direct and manage the entity,” Verizon Comments at 4.
 and aid the Commission in enforcing our rules and the RCC Act.  We observe, however, that because the primary purpose of this information is to aid the Commission in preventing circumvention of our registry requirements, unlike the other five categories of information, this latter category of information will not be made routinely available for public inspection.    
B. Definitions
9. As we proposed in the Third RCC FNPRM, See Third RCC FNPRM, FCC 18-45, at para. 104.
 we adopt the definition of “intermediate provider” provided by Congress in section 262(i)(3). 47 U.S.C. § 262(i)(3).
  This definition replaces the definition of “intermediate provider” currently in our rules. See 47 CFR § 64.2101 (referring to 47 CFR § 64.1600 which defines “intermediate provider” as “any entity that carries or processes traffic that traverses or will traverse the PSTN at any point insofar as that entity neither originates nor terminates that traffic.”). 
  Thus, for purposes of our pre-existing rural call completion rules and those we adopt pursuant to the RCC Act, we define an intermediate provider as any entity that: “(A) enters into a business arrangement with a covered provider or other intermediate provider for the specific purpose of carrying, routing, or transmitting voice traffic that is generated from the placement of a call placed (i) from an end user connection using a North American Numbering Plan resource; or (ii) to an end user connection using such a numbering resource; and (B) does not itself, either directly or in conjunction with an affiliate, serve as a covered provider in the context of originating or terminating a given call.” 47 U.S.C. § 262(i)(3).
  We observe that in section 262(i)(1), Congress explicitly adopted the Commission’s definition of “covered provider,” See 47 U.S.C. 262(i)(1) (“The term ‘covered provider’ has the meaning given the term in section 64.2101 of title 47, Code of Federal Regulations, or any successor thereto.”).
 suggesting that, to the extent that section 262(i)(3) offers a different or narrower interpretation of “intermediate provider” than the current definition in our rules, Congress intended the definition provided in the RCC Act to apply to our rules implementing the RCC Act.    
10. The definition of “intermediate provider” in section 262(i)(3) is substantially similar to the definition previously applicable to our rural call completion rules, Under section 64.2101 of the Commission’s rules, “intermediate provider” is given the same meaning as in section 64.1600(f), which defines it as “any entity that carries or processes traffic that traverses or will traverse the PSTN at any point insofar as that entity neither originates nor terminates that traffic.”  47 CFR §§ 64.2101, 64.1600(f).
 with the added requirement that an intermediate provider “have a business arrangement with a covered provider or other intermediate provider for the specific purpose of carrying, routing, or transmitting voice traffic.” 47 U.S.C. § 262(i)(3).
  As we observed in the Third RCC FNPRM, the legislative history surrounding the RCC Act suggests that Congress intended to exclude from the definition of “intermediate provider” entities “that only incidentally transmit voice traffic, like Internet Service Providers who may carry voice traffic alongside other packet data.” Report of the Committee on Commerce, Science, and Transportation on S. 96, Improving Rural Call Quality and Reliability Act of 2017, S. Rep. No. 115-6, at 6 (2017) (Senate Commerce Committee Report); see also Third RCC FNPRM, FCC 18-45, at para. 80; USTelecom Comments at 3; Verizon Comments at 2-3.
  The additional requirement that intermediate providers have a business arrangement to carry voice traffic effectuates this intent.  Thus, entities like Internet Service Providers that may carry voice traffic only incidentally, absent any business arrangement with a covered provider or intermediate provider pertaining to that traffic, will not be considered intermediate providers subject to our registry and service quality rules.  
11. We decline to adopt an exemption from this definition for “facilities-based carriers that provide backbone network capacity” to mobile virtual network operators (MVNOs), as urged by Sprint. Sprint Comments at 2.
  To the extent that such providers carry voice traffic that originates or terminates with a North American Numbering Plan (NANP) resource pursuant to a specific business relationship with a covered provider or other intermediate provider for said voice traffic, and does not itself serve as a covered provider in the context of originating or terminating a given call, that entity is an intermediate provider under the RCC Act and the rules we adopt today.  We agree with NTCA’s argument that any effect of this rule on entities that, like Sprint, supply wholesale capacity to MVNOs is likely to be “minimally burdensome.” NTCA Reply at 4.
  As USTelecom observes, the information submission needed to comply with our registration requirement “[is] of a highly routine nature that should be unproblematic for any legitimate company to provide.” USTelecom Comments at 5.
  
12. In addition, consistent with our proposal in the Third RCC FNPRM, we also adopt the definition of “covered voice communication” provided by Congress in the RCC Act. Second RCC Order at para. 106.
  The RCC Act defines “covered voice communication” as “a voice communication (including any related signaling information) that is generated—(A) from the placement of a call from a connection using a North American Numbering Plan resource or a call placed to a connection using such a numbering resource; and (B) through any service provided by a covered provider.” 47 U.S.C. § 262(i)(2).
  
13. We decline to adopt the proposal advanced by Verizon and USTelecom to limit the definitions of “intermediate provider” and “covered voice communications” to “apply only to intermediate providers that handle covered voice communications that are destined for rural areas.” Verizon Comments at 17; see also USTelecom Comments at 15.  We also decline to adopt alternative suggestions that we forebear from applying the RCC Act and our implementing rules to non-rural areas.  See USTelecom Comments at 13.  Forbearance is appropriate if the Commission determines that: (1) enforcement of a provision or regulation is not necessary to ensure that the telecommunications carrier’s charges, practices, classifications, or regulations are just, reasonable, and not unjustly or unreasonably discriminatory; (2) enforcement of the provision or regulation is not necessary to protect consumers; and (3) forbearance from applying such provision or regulation is consistent with the public interest.  Petition to Establish Procedural Requirements to Govern Proceedings for Forbearance Under Section 10 of the Communications Act of 1934, as amended, WC Docket No. 07-267, Report and Order, 24 FCC Rcd 9543, 9544, para. 2 (2009).  As we explain, the RCC Act reflects Congress’s judgment that uniform rules are the best means to ensure rural call completion; and limiting the RCC Act’s registry requirements to rural areas would undermine the newly passed law’s effectiveness.  See infra paras. 13-14.  Because forbearance would be inconsistent with the public interest and the Commission’s responsibility to protect consumers, as well as Congress’s direction in the RCC Act that the Commission “ensure the integrity of the transmission of covered voice communications to all customers in the United States” (47 U.S.C. § 262(c)(2)(A) (emphasis added)), we decline USTelecom’s request that the Commission forbear from applying the RCC Act to non-rural areas.
  We disagree with Verizon’s suggestion that “[t]he RCC Act’s text supports construing the statute to ensure application only to rural areas.” Verizon Comments at 18.
  If Congress had intended to apply the RCC Act definitions only to rural areas, it easily could have done so.  As Verizon itself notes, “[t]he RCC Act on its face does not include a limitation to rural areas.” Id. at 17.
  Indeed, apart from the short title of the RCC Act, the word “rural” appears nowhere in its text. See RCC Act.
  As enacted, section 262 is entitled “Ensuring the integrity of voice communications,” and none of the law’s provisions or definitions—including those for “intermediate provider” and “covered voice communication”—contain the word “rural.” 47 U.S.C. § 262(i).
  Nor is the Commission’s definition of “covered provider,” which Congress adopted by reference in the RCC Act, limited to providers who originate traffic destined for rural areas. See id.; 47 CFR 64.2101.
  
14. Although we agree with USTelecom’s suggestion that Congress “intended to implement measures to ensure completion of calls to rural areas,” USTelecom Comments at 11.
 we disagree with the argument that we should therefore read the word “rural” into the RCC Act where it does not appear. See Verizon Comments at 19-20; USTelecom Reply at 7.
  This line of reasoning fails to differentiate between Congress’s stated objective—to improve rural call completion—and the specific means by which Congress has directed the Commission to achieve this goal.  Indeed, limitation of the RCC Act’s provisions to traffic destined to rural areas would appear to contravene Congress’s explicit instructions to the Commission in promulgating rules pursuant to the RCC Act, which are to “ensure the integrity of the transmission of covered voice communications to all customers in the United States;” 47 U.S.C. § 262(c)(2)(A) (emphasis added).
 and to “prevent unjust or unreasonable discrimination among areas of the United States in the delivery of covered voice communications.” 47 U.S.C. § 262(c)(2)(B).
  The rules we adopt today are designed to achieve these ends.  Despite Verizon’s and USTelecom’s arguments to the contrary, Congress concluded that the best way to address rural call completion issues is to craft uniform rules applicable to intermediate providers regardless of a call’s geographic destination.  As HD Tandem argues, call completion issues are not inherently limited to rural areas, and limiting application of the rules we adopt pursuant to the RCC Act to rural areas may have the unintended consequence of simply shifting bad actors into new markets. See HD Tandem Reply at 3.
  Unscrupulous providers may cause call completion issues in non-rural areas as well, See id.
 and our construction of the registry provisions of the RCC Act is consistent with Congress’s explicit direction to the Commission, as noted above.  Therefore, assuming arguendo that the Act is ambiguous, we believe our approach is likely to be more effective in curtailing the use of these providers and achieving Congress’s clearly stated objective of improving rural call completion than the reading of the Act suggested by Verizon and USTelecom.  
15. Nor are we persuaded that that we should modify the plain meaning of the RCC Act’s language to correspond with the scope of our recently adopted monitoring rule, USTelecom Comments at 11, Verizon Comments at 18.  
 which, unlike the RCC Act, does apply only to “call attempts to rural telephone companies.” See 47 CFR § 64.2111(a) (requiring covered providers to monitor intermediate provider performance “in the completion of call attempts to rural telephone companies from subscriber lines for which the covered provider makes the initial long-distance call path choice”).  
  The monitoring rule adopted in the Second RCC Order requires covered providers to monitor the performance of intermediate providers when they direct calls to rural areas, and to take action to address identified problems. Second RCC Order at Part III.A.1.
  The RCC Act and our implementing rules require certain intermediate providers to register with the Commission and abide by service quality standards, and prevent covered providers from using unregistered intermediate providers to deliver covered voice communications. See RCC Act.
  The monitoring rule and the rules adopted pursuant to the RCC Act are complementary, but because covered providers and intermediate providers are differently situated and play different roles in the delivery of voice traffic, we find that it is appropriate that our rules, and the RCC Act, treat them differently. For this reason, we also disagree with Verizon’s suggestion that our safe harbor, referenced in the RCC Act in Section 262(h), compels limiting the RCC Act to rural areas.  See Verizon Comments at 18.  
  Given the heightened vigilance our monitoring rule requires of covered providers, it is appropriate that it applies more narrowly than the RCC Act’s prohibition on covered provider use of unregistered intermediate providers. 
16. Finally, we disagree with arguments that we should apply our rules implementing section 262 only to rural areas to increase “[a]dministrative efficiency” or to decrease the burdens that the RCC Act imposes on affected entities. See USTelecom Comments at 11, Verizon Comments at 18-19.
  In particular, we disagree with Verizon’s argument that the burdens of complying with the RCC Act will “vastly increase” absent a limitation of section 262 to traffic destined to rural areas. Verizon Comments at 18-19
  Verizon argues that without this restriction “[t]he number of OCNs required to be monitored would more than triple, from the over 1,300 OCNs required for monitoring rural destinations, to more than 4,700 rural and non-rural OCNs.” Id.  
  The monitoring rule, however, remains limited to requiring that covered providers monitor intermediate provider performance in the completion of call attempts to rural telephone companies.  Further, because the RCC Act and our implementing rules require intermediate providers to register with the Commission, we disagree that requiring covered providers to only use registered intermediate providers, without cabining such requirements to calls to rural areas, would be burdensome.  We therefore expect that the burdens of our registry rules on both intermediate providers and covered providers will be minimal. See infra Part III.C-D; West Telecom Comments at 4.
      
C. Intermediate Providers Who Must Register with the Commission
1. Scope of Registry Requirement
17. Consistent with the text of section 262(a), we adopt our proposal in the Third RCC FNPRM to require any intermediate provider “that offers or holds itself out as offering the capability to transmit covered voice communications from one destination to another and that charges any rate to any other entity (including an affiliated entity) for the transmission” 47 U.S.C. § 262(a).
 to register with the Commission.  In adopting this proposal, we decline to simply apply the registry obligations of section 262(a) to all intermediate providers, as that term is defined in section 262(i)(3). See HD Tandem Comments at 4; 47 U.S.C. § 262(i)(3). 
  As we suggested in the Third RCC FNPRM, the RCC Act’s registry requirements and service quality standards apply to a subset of “intermediate providers,” namely those that “charge[] any rate” for the transmission of covered voice communications. Third RCC FNPRM, FCC 18-45, at paras. 76-77 (“Section 262(a) appears to limit its application to intermediate providers, as defined in 262(i)(3), that meet additional limiting factors.  One of these factors is that section 262(a) applies only to intermediate providers that charge a rate to other entities, including their affiliates, for transmitting covered voice communications.”); see also INCOMPAS Comments at 6.
  
18. We agree with commenters who argue that the “charge[] any rate” language in section 262(a) is best interpreted broadly. See ANI Comments at 2-3; HD Tandem Comments at 4; USTelecom Comments at 2-3; Verizon Comments at 2; NTCA Reply at 2. 
  Thus, we conclude that the application of section 262(a) is not limited only to intermediate providers who charge a per-call fee for service; rather, section 262(a) encompasses broader remuneration agreements, as well as entities offering service in exchange for in-kind or other, non-monetary forms of consideration.  We therefore disagree with commenters who express concern that the “charge[] any rate” qualifier may exclude entities that Congress intended to reach with the RCC Act. See ANI Comments at 2-3; HD Tandem Comments at 4. 
  To be deemed an intermediate provider under section 262(i), an entity must have a “business arrangement with a covered provider or other intermediate provider for the specific purpose of carrying, routing, or transmitting” voice traffic originating or terminating with a NANP resource. 47 U.S.C. § 262(i)(3).
  Although section 262(a) adds the requirement that an intermediate provider “charge[] any rate” for transmitting covered voice communications, we find that to “charge any rate” in this context is merely to demand compensation for services based on a fixed ratio, scale, or standard. See Merriam Webster (defining “rate” as “a charge, payment, or price fixed according to a ratio, scale, or standard”); see also Black’s Law Dictionary (10th ed. 2014) (defining “rate” as a “[p]roportional or relative value; the proportion by which quantity or value is adjusted”).  
  Nothing in the language of the RCC Act requires that the relevant “rate” charged be in the form of monetary consideration. See ANI Comments at 2-3; see also 47 U.S.C. § 262(a).
  We agree with ANI, HD Tandem, and Verizon that relying on remuneration as a qualifier may open the possibility for non-fee arrangements to circumvent the RCC Act and our implementing rules, and thus interpret section 262(a) as applying to any intermediate provider that demands monetary or non-monetary consideration for its services. See supra paras. 9-11 (discussing the definition of “intermediate provider”).
  
2. Registration Deadline
19. We adopt our proposal in the Third RCC FNPRM to require intermediate providers to submit their registration to the Commission within 30 days after a Public Notice announcing the approval by the Office of Management and Budget of the final rules establishing the registry. Third RCC FNPRM at para. 73.
  We find, and the record supports, See West Telecom Comments at 10. 
 that a 30-day timeframe will allow existing intermediate providers adequate time to come into compliance with our registry rules.  In addition, as we explained in the Third RCC FNPRM, this phase-in period is consistent with the filing timeframe for Form 499-A, Third RCC FNPRM at para. 73.
 which requires that new filers register with the Commission within 30 days. FCC, 2017 Instructions to the Telecommunications Reporting Worksheet, FCC Form 499-A, https://apps.fcc.gov/edocs_public/attachmatch/DOC-347163A1.pdf.
  Pursuant to sections 262(a) and (b), upon expiration of the initial 30-day registration window, new intermediate providers will be required to register with the Commission before beginning to transmit covered voice communications for covered providers.  
20. We require intermediate providers to submit any necessary updates regarding their registration to the Commission within 10 business days.  The record reflects that our proposal to require intermediate providers to update their registrations within seven days may not provide intermediate providers sufficient time to make necessary changes. See ATIS Comments at 3; West Telecom Reply at 6. 
  As such, we permit intermediate providers up to 10 business days to submit any necessary registration updates.  As ATIS argues, this additional time will better enable intermediate providers to respond to changes related to mergers or similar events.  And, as West Telecom notes, “there should be little adverse impact from the slightly longer compliance period.” West Telecom Comments at 5.  Because we agree with Verizon that “[t]he required information should be readily available,” we decline to increase the time period for updates to 30 days, as Verizon requests.  Verizon Comments at 5.  As USTelecom notes, the information to be collected is generally of a “routine nature that should be unproblematic for any legitimate company to provide.”  USTelecom Comments at 5.   Further, because covered providers and members of the public will rely on the information contained in the registry, for example, in making routing decisions or attempting to discover point of contact information to resolve rural call completion issues, we find that a 30-day update period would unnecessarily undermine the effectiveness of the registry requirement by increasing the likelihood that the information contained within the registry is out-of-date.    

3. Enforcement
21. Intermediate providers that fail to register with the Commission on a timely basis, as required by our rules, shall be subject to enforcement under the Act and our rules, including forfeiture. See 47 U.S.C. § 503(b); 47 CFR § 1.80.
  For the Commission to exercise its forfeiture authority for violations of the Act and the Commission’s rules without first issuing a citation, the wrongdoer must hold (or be an applicant for) some form of license, permit, certificate, or other authorization from the Commission, or be engaged in an activity for which such a license, permit, certificate, or other authorization is required. See 47 U.S.C. § 503(b).
  Because intermediate providers that provide service to covered providers are required, under section 262(a)(1), to register with the Commission, we conclude that an intermediate provider offering such services is engaged in an activity for which Commission license or authorization is required under sections 503(b)(5) and 262(a)(1) of the Act.  
22. We disagree with Verizon’s unsupported assertion that the Commission “should not interpret the act of registration itself as a grant of authorization to exercise its forfeiture authority without first issuing a citation.” Verizon Comments at 8 n.26.  We note that no other parties commented our proposal to “interpret the act of registration itself as a grant of Commission authorization to intermediate providers and allow us to exercise our forfeiture authority against registered providers without first issuing a citation.”  See Third RCC FNPRM, FCC 18-45, at para. 98.
  The RCC Act makes clear that Congress intended the intermediate provider registry to function as a qualification for entry into the intermediate provider market, See 47 U.S.C. § 262(b) (“A covered provider may not use an intermediate provider to transmit covered voice communications unless such intermediate provider is registered . . . .”).    
 and, as such, the requirements to register and subsequently maintain that registration in good standing serve as Commission license or authorization to function as an intermediate provider transmitting covered voice communications in the United States.  Consistent with the Administrative Procedure Act’s definition of “license,” which includes “whole or part of an agency … registration,” the Commission has found that the term “license” encompasses registrations. See, e.g., Aura Holdings of Wisconsin, Inc., 2018 WL 1725588, at para. 15 (2018) (citing Streamlining the Commission’s Antenna Structure Clearance Procedure, Report and Order, 11 FCC Rcd 4272, 4290, para. 43 (1995)); see also Sol Schildhause, Direction Letter, 100 FCC 2d 968 (1985) (holding that cable operators were still subject to forfeiture penalties without citation per section 503(b)(5) even after Commission replaced certification process with registration scheme).
  
23. Accordingly, we conclude that, under our rules, we may exercise our forfeiture authority against intermediate providers that fail to register, without first issuing a citation.  When determining the amount of a forfeiture, we will consider “the nature, circumstances, extent, and gravity of the violation and, with respect to the violator, the degree of culpability, any history of prior offenses, ability to pay, and such other matters as justice may require.” 47 U.S.C. § 503(b)(2)(E).
  To the extent that an intermediate provider is a common carrier, the intermediate provider may be assessed a forfeiture of up to $196,387 per violation or each day of a continuing violation and up to a statutory maximum of $1,963,870 for any single act or failure to act. See 47 U.S.C. § 503(b)(2)(B); see also 47 CFR § 1.80(b)(2); Amendment of Section 1.80(b) of the Commission’s Rules, Adjustment of Civil Monetary Penalties to Reflect Inflation, Order, DA 18-12 (EB 2018).  These amounts reflect inflation adjustments to the forfeitures specified in Section 503(b)(2)(B) of the Act ($100,000 per violation or per day of a continuing violation and $1,000,000 per any single act or failure to act).  The Federal Civil Penalties Inflation Adjustment Act Improvement Act of 2015 (2015 Inflation Adjustment Act) requires the Commission to amend its forfeiture penalty rules to reflect annual adjustments for inflation in order to improve their effectiveness and maintain their deterrent effect.  Further, the 2015 Inflation Adjustment Act provides that the new penalty levels shall apply to penalties assessed after the effective date of the increase, including when the violations associated with the penalties predate the increase.
  An intermediate provider that is not a common carrier is subject to a forfeiture of up to $19,639 per violation or each day of a continuing violation and up to a statutory maximum of $147,290 for any single act or failure to act. See 47 U.S.C. § 503(b)(2)(D); 47 CFR § 1.80(b)(7).  These same penalties also apply to an entity that does not hold (and is not required to hold) a Commission license, permit, certificate, or other instrument of authorization.

24. In addition, we decline to apply the Commission’s “red-light” rule prior to intermediate providers’ registration with the Commission. See generally 47 CFR § 1.1910 (Effect of insufficient fee payments, delinquent debts or debarment).  See also Third RCC FNRPM at para. 100.
  In the Third RCC FNPRM, we sought comment on whether intermediate providers should be prohibited from registering with the Commission if they are “red-lighted” by the Commission for unpaid debts or other reasons. Third RCC FNPRM at para.100.
  Under the red light rule, the Commission will not process applications and other requests for benefits by parties that owe non-tax debt to the Commission.  47 CFR § 1.1910.
  In the context of our rules implementing the Debt Collection Improvement Act, the Commission has noted that “[i]n some instances . . . filings with the Commission go into effect immediately (or within one day), thus precluding a check to determine if the filer is a delinquent debtor before the request goes into effect.” Amendment of Parts 0 and 1 of the Commission’s Rules, Report and Order, 19 FCC Rcd 6540, 6544, para. 12 (2004) (citing 47 U.S.C. §§ 203, 206).
  The Commission noted that in such situations, the Commission has the ability to take appropriate action after the fact for noncompliance with any of the Commission’s rules. Id.
  Because we will make registrations immediately effective upon receipt, this is a situation which precludes a check to determine if the intermediate provider is a delinquent debtor before the registration goes into effect.  As a result, any applicable red-light check will be conducted after intermediate provider registration; appropriate action, if any, will be taken against intermediate providers who are later discovered to be delinquent debtors, including de-registration.
D. Covered Providers May Not Use Unregistered Intermediate Providers
1. Covered Providers Must Take Steps Reasonably Calculated to Prevent Use of Unregistered Intermediate Providers Anywhere in the Call Path
25. We find that section 262(b) requires a covered provider to ensure that all intermediate providers involved in the transmission of its covered voice communications are registered with the Commission. Section 262(b) states that “[a] covered provider may not use an intermediate provider to transmit covered voice communications unless such intermediate provider is registered [with the Commission] under subsection (a)(1).”  47 U.S.C. § 262(b).
  The definition of “intermediate provider” contained in section 262(i) broadly refers to providers at all intermediate points in the call chain, excluding covered providers who originate or terminate a given call; 47 U.S.C. § 262(i)(3).
 and, section 262(a) requires any of these entities that offer to transmit covered voice communications for a rate to register with the Commission and meet our service quality standards. 47 U.S.C. § 262(a).  We note, however, that some intermediate providers may be exempted from our service quality standards pursuant to section 262(h) and our safe harbor provisions.  See 47 U.S.C. § 262(h); 47 CFR 64.2107(a).
  Thus, we conclude that Congress’s requirement that covered providers “may not use” an unregistered intermediate provider to transmit traffic 47 U.S.C. § 262(b).
 is best understood to mean that a covered provider may not rely on any unregistered intermediate providers in the path of a given call.  Consistent with our recently-adopted monitoring rule, we allow covered providers to use contractual restrictions that flow down the entire intermediate provider call path to fulfill their obligations under section 262(b). See Third RCC FNPRM at para. 34.
  
26. We conclude that this interpretation best supports Congress’s aims in enacting the RCC Act by placing responsibility for compliance with section 262(b) with a single, easily identifiable entity.  Our construction of section 262(b) is supported by the record in this proceeding, ANI Comments at 3; NTCA Comments at 4; West Telecom Comments at 9-10.
 and is consistent with the rules adopted in the Second RCC Order, which highlighted the importance of “hold[ing] a central party responsible for call completion issues.” See Third RCC FNPRM at para. 16, 31.
  As we found in the Second RCC Order, because “covered providers select the initial long-distance path and therefore can choose how to route a call,” it is “appropriate that they should have responsibility for monitoring rural call completion performance” along the entire path of a given call. Id. at para. 16.
   
27. We agree with arguments advanced by NTCA that limiting the application of section 262(b) only to the first contracted intermediate provider would “defeat the spirit and intent of [the RCC Act]” and potentially allow “unscrupulous carriers or intermediate providers to circumvent their ultimate responsibility to complete calls.” NTCA Comments at 3.
  As we have explained, a call often travels through a chain of multiple intermediate providers before reaching its destination.  Because nothing in our rules or section 262 requires intermediate providers to use other registered intermediate providers to transmit covered voice communications, interpreting the restrictions of section 262(b) to apply only to the first contracted intermediate provider would substantially undermine the purpose of the RCC Act, which is to improve rural call completion by, among other things, requiring any intermediate provider involved in the transmission of covered voice communications to register (and maintain a registration) with the Commission.  Section 262(b) would do little to improve call completion if it was construed only to require that the first of many intermediate providers in a call path register with the Commission.  
28. We disagree with commenters who argue in favor of such a narrow reading of section 262(b). Comcast Comments at 7; ITTA Comments at 3
  In particular, we disagree with Comcast’s claims that covered providers “lack . . . control over intermediate providers with which they have no direct contractual relationship.” Comcast Comments at 7.
  To the contrary, we have found that as the first party in the call path, covered providers have significant ability to affect the behavior of downstream providers—including those with which there is no direct relationship—through the use of contractual provisions that travel along the entire chain of providers. Third RCC FNPRM at para. 16, 31-33.
  
29. Consistent with the monitoring rule for covered providers, pursuant to section 262(b) we require covered providers to (i) ensure that any directly contracted intermediate provider is registered with the Commission; and (ii) implement “contractual restrictions . . . that are reasonably calculated to ensure” that any subsequent intermediate providers with which the covered provider does not directly contract are registered under section 262(a). See id. at para. 34; 47 U.S.C. § 262(a).
  As with the monitoring rule, covered providers must “ensure that these [contractual] restrictions flow down the entire intermediate provider call path.” Third RCC FNPRM at para. 34.
  For example, covered providers may require that, as a condition of accepting traffic, (i) any directly contracted intermediate providers must agree to not hand off traffic to any unregistered intermediate providers; and (ii) that they will impose this same restriction on any subsequently contracted intermediate providers.  
30. Because we allow covered providers to use indirect contractual restrictions to satisfy their obligations under section 262(b), we disagree with arguments that our interpretation of section 262(b) to encompass all intermediate providers in the call path will be impractical, inefficient, or excessively burdensome. ITTA Comments at 3-4.
  As West Telecom notes, “[n]egotiated arrangements, when combined with active monitoring procedures, are an accepted and proven industry approach to ensuring satisfactory performance by downstream providers.” West Telecom Comments at 9-10.
  We disagree with ITTA’s assertions that construing section 262(b) “to mean that the covered provider must ‘ensure’ only that the first intermediate provider in the call path is registered is far more consistent with the principles of privity applied by the Commission in the Second RCC Order.” ITTA Comments at 3-4.
  To the contrary, as we have explained, the construction of section 262(b) we adopt today uses the same notion of privity as that which formed the basis of our monitoring rule.  As NTCA notes, ITTA’s argument “ignores the fact that covered providers have contractual relationships with the first Intermediate Provider in the call path, [which is] capable of then contractually binding downstream providers to only use registered providers from an identified list.” NTCA Reply at 5. 
  Instead, as NTCA and HD Tandem argue, because covered providers are responsible for monitoring the entire call path pursuant to our monitoring rule, it is reasonable to require them to ensure through contractual provisions that all intermediate providers in the call path are registered with the Commission. Id. at 4-5; HD Tandem Comments at 4.
  Indeed, as we have explained, this construction of section 262(b) most reasonably gives effect to Congress’s intent in passing the RCC Act. See supra paras. 25-27.
  
31. We require covered providers to use the intermediate provider registry to ensure that the intermediate providers with which they contract are registered with the Commission at the time any agreement for the transmission of covered voice communications is finalized.  We agree with West Telecom, however, that it is unnecessary to require covered providers to repeatedly check the registry to confirm the registration status of all intermediate providers in the chain of a call. West Telecom Comments at 12.
  Therefore, once an agreement for the transmission of covered voice communications is effective, we allow covered providers to use contractual restrictions to ensure that all intermediate providers in the call path maintain an active registration with the Commission.  As West Telecom notes, it may be more effective and cost-efficient to require downstream providers to promptly report de-registrations to the upstream provider, rather than forcing the upstream provider to repeatedly recheck the registry to verify the continued registration of downstream providers. Id.
  Notwithstanding any contractual provisions, however, if a covered provider gains actual knowledge that it is using an unregistered intermediate provider anywhere in its call routing, it must cease that practice.
32. We agree with NCTA that “covered provider[s] should be afforded a reasonable period of time to transition to alternative providers without penalty or threat of enforcement.” NCTA Reply at 6-7.
  As NCTA notes, “[i]t takes time for covered providers to restructure their call routes, renegotiate their relationships with intermediate providers, or make the appropriate contractual arrangements to transition to alternative providers.” Id.
  Without a transition period, covered providers might be left with no option other than to decline to complete calls on an affected route. Id.
  Therefore we grant covered providers a reasonable period of time, but no more than 45 days, in which to adjust their call routing practices to avoid use of an unregistered intermediate provider after gaining knowledge of its deregistration or lack of registration. We remind covered providers that, with respect to rural destinations that a provider knows or should know are experiencing call completion problems, the Second RCC Order requires covered providers to “promptly resolve[ ] any anomalies or problems and take[ ] action to ensure they do not recur.”  Second RCC Order, FCC 18-45, para. 25; see also id. at para. 38 & n.133 (requiring covered providers to respond to reports of rural call completion issues “as soon as reasonably practicable and within no more than a single business day under ordinary circumstances” but noting “complex call completion issues may take longer than a single day to resolve”).  Our experience investigating individual call completion complaints has shown that two weeks from reporting is ample time for a provider to resolve a specific call completion problem.  
  Although we find, based upon our experience, that 45 days will provide covered providers with sufficient time to adjust their call routing practices, covered providers should remove deregistered or unregistered intermediate providers as soon as reasonably practicable.   
33. Exception for Force Majeure.  We adopt a limited exception to our rules and exempt covered providers from the prohibition on the use of unregistered intermediate providers in circumstances where, due to force majeure for which the covered provider invokes a disaster recovery plan, no registered intermediate providers are available to transmit covered voice communications to their destination. See ATIS Comments at 4-6.
  This limited exemption that we adopt today is similar in nature to exemptions found in our copper retirement rules. See 47 CFR § 51.333(g).
  Under those provisions, incumbent local exchange carriers (LECs) are exempted from certain provisions of our copper retirement rules in the case of a force majeure for which the incumbent LEC invokes a disaster recovery plan. See Accelerating Wireline Broadband Development by Removing Barriers to Infrastructure Investment, Report and Order, Declaratory Ruling and Further Notice of Proposed Rulemaking, 32 FCC Rcd 11128, 11157-59, paras. 71-78 (2017) (Wireline Infrastructure Order). For the purposes of this exemption, we give the terms “force majeure” and “disaster recovery plan” the definitions contained in 47 CFR § 51.333(g) (defining “force majeure” as “a highly disruptive event beyond the control of the [entity seeking relief], such as a natural disaster or a terrorist attack;” and “disaster recovery plan” as “a disaster response plan developed . . . for the purpose of responding to a force majeure event”).
  As with our copper retirement notification rules, allowing an exception in response to force majeure will ensure that service providers are able “to restore their networks and service to consumers as quickly as possible rather than jump through regulatory hoops.” Wireline Infrastructure Order, 32 FCC Rcd at 11157, para. 71.
  
34. We believe that the language of the RCC Act provides sufficient authority for us to create a narrow and time-limited exemption of the statutory prohibition on covered provider use of unregistered intermediate providers.  In directing the Commission to promulgate rules to implement the RCC Act, Congress specifically instructed the Commission to “ensure the integrity of the transmission of covered voice communications to all customers in the United States.” 47 U.S.C. § 262(c)(2)(A).
  We conclude that permitting covered providers to use unregistered intermediate providers to deliver covered voice communications in the case of force majeure, as described above, for a limited period of time while the provider has invoked a disaster recovery plan is necessary to help “ensure the integrity” of covered voice communications to all customers in the United States.    
35. We find that carving out this limited exception provides regulatory certainty to covered providers in these limited circumstances where strict compliance with our rules would not be possible or in the public interest.  We have found that “it is vital that we do everything we can to facilitate rapid restoration of communications networks in the face of natural disasters and other unforeseen events.” Wireline Infrastructure Order, 32 FCC Rcd at 11157, para. 71.
  By codifying an exception to our rules implementing section 262(b) for circumstances under which covered providers would otherwise need to seek a waiver, we ensure that our rules enable covered providers to restore service as quickly as possible following force majeure.
36. Therefore, in circumstances where, due to force majeure, no registered intermediate providers are available to transmit covered voice communications to their destination, we exempt covered providers from the prohibition on use of unregistered intermediate providers.  To obtain relief under this provision, we require covered providers to submit to the Commission a certification explaining the circumstances justifying an exemption as soon as practicable.  The certification must be signed by a corporate officer or official with authority to bind the corporation, and knowledge of the details of the covered provider’s inability to comply with our rules.  The exemption period will last a period of 180 days, after which time a covered provider will be required to submit a request for an extension of the exemption period, which must include a status report on the covered provider’s attempts to come into compliance with section 262(b), including a statement of how the covered provider intends to ensure that calls are completed notwithstanding the lack of available registered intermediate providers. Accord id. at 11158-59, paras. 74-76.
  
2. Covered Providers Must be Capable of Disclosing to the Commission the Identity of all Intermediate Providers in the Call Path
37. Consistent with our proposal in the Third RCC FNPRM, we require covered providers to know, or be capable of knowing, the identity of all intermediate providers in the path of a given call. See Second RCC Order at para. 81.
  We further require covered providers to disclose this information to the Commission upon request.  As we explained in the Second RCC Order, Id.
 this requirement is a natural outgrowth of section 262(b), which prohibits covered providers from using unregistered intermediate providers anywhere in the call path. See supra Part 1. 
 
38. We agree with HD Tandem that “[a] registration process without this oversight mechanism will likely be very ineffective.” HD Tandem Comments at 5. 
  Permitting covered providers to route calls without any means of determining which intermediate providers participate in delivery of covered voice communications would render the requirements in section 262(b), and the registry scheme of the RCC Act, meaningless.  As we noted in the Second RCC Order, “allowing covered providers to not know the identities of their intermediates amounts to allowing willful ignorance: i.e., it would allow covered providers to circumvent their duties by employing unknown or anonymous intermediate providers in a call path.” Second RCC Order at para. 81.
  
39. We disagree with commenters who suggest that this requirement should be limited to apply only to intermediate providers with which a covered provider shares a direct contractual relationship. See NCTA Comments at 4; Intelliquent Comments at 6; Comcast Comments at 4.
   As NTCA observes, the requirement “that intermediate providers be contractually bound and identifiable” is essential to enforcing the registry and service quality standards imposed by the RCC Act. NTCA Comments at 5.
  Furthermore, as we have explained, our rural call completion rules are premised on the fact that a central party—covered providers—must be responsible for ensuring that calls are completed.  The RCC Act complements this scheme by making covered providers responsible for preventing the use of unregistered intermediate providers anywhere in the path of a given call.  
40. We therefore disagree with the proposal advanced by Comcast that would put the onus on the Commission to assemble this information by making separate inquiries of a covered provider and each of its individual intermediate providers in order to obtain a full picture of the routing of a given call. Comcast Comments at 5-6.  
  Requiring covered providers to know and disclose to the Commission only the identities of the intermediate providers with which they immediately contract would be administratively inefficient, insofar as it would require the Commission to expend scarce resources in an effort to piece together the identities of all parties in the path of a given call.  Pursuant to the Commission’s rural call completion rules and section 262(b), it is covered providers, and not the Commission, that are ultimately responsible for ensuring that calls are completed using only registered intermediates.  Moreover, covered providers, as the party initiating calls and making the initial routing decisions for covered voice communications, are the most logical and efficient party to bear the responsibility for obtaining the identities of their intermediate providers and relaying this information to the Commission.  As HD Tandem observes, “since covered providers are accountable for exercising oversight regarding the performance of all intermediate providers (in the path of calls for which the covered provider makes the initial long-distance call path choice), they must be responsible for obtaining and retaining this information.” HD Tandem Comments at 4.
  
41. We agree with West Telecom that it is not necessary under section 262 to require covered providers to “know at all times ‘the identity of all intermediate providers in a call path,’” and that it is sufficient that “such information be promptly obtainable when there is a call completion problem requiring investigation or a request from regulatory authorities.” West Telecom Comments at 12. 
  Several commenters express concern that requiring covered providers to maintain a current list of every intermediate provider participating in every transmission of covered voice communications would be excessively burdensome relative to the benefits of such a rule. Comcast Comments at 2-3; Inteliquent Comments at 6; NCTA Reply at 1.
  For this reason, as with our monitoring rule and the prohibition on covered provider use of unregistered intermediaries, we allow covered providers to satisfy their obligations through the use of contractual restrictions that permit the discovery within two weeks of the identities of any intermediate providers in the path of a given call. We note that we currently allow a provider two weeks to investigate a rural call competition complaint and file a write written report with the Commission’s Enforcement Bureau on the results of its investigation and how it resolved the problem.
  As West Telecom argues, this will permit the Commission to access necessary information related to rural call completion failures, while avoiding the costs and burdens associated with unnecessary monitoring efforts. West Telecom Comments at 10-12.
  
3. Compliance Deadline
42. We require covered providers to comply with our rules requiring the use of registered intermediate providers within 90 days after the date by which intermediate providers must register with the Commission.  As Comcast notes, “most contracts in place today do not obligate intermediate providers to disclose the names of other service providers to which the intermediate providers deliver traffic further downstream.” Comcast Comments at 3.
  A number of commenters expressed concern that our proposed 60-day phase-in period See Second RCC Order at para. 84 (proposing to grant covered providers an additional 30-days for compliance after the expiration of the 30-day registration deadline for intermediate providers). 
 would be insufficient for covered providers to renegotiate their contracts for routing voice traffic in order to come into compliance with the prohibition on use of unregistered intermediates. See ATIS Comments at 3; INCOMPAS Comments at 8, ITTA Comments at 5; Sprint Comments at 3; West Telecom Comments at 10.
  We find, based on the record before us, that a 90-day phase-in period following the date by which intermediate providers must register with the Commission will permit covered providers adequate time to make adjustments to existing contractual arrangements. See ANI Comments at 4; HD Tandem Reply at 5; Sprint Comments at 3.
 
43. We disagree with commenters who suggest that a longer, or shorter, timeframe is appropriate. See ATIS Comments at 3 (arguing in favor of a three-year window); NCTA Reply at 4 (arguing in favor of a one-year phase-in period).
  Waiting for a period of a year or more to require covered providers to comply with their obligations under section 262 and our rules would frustrate the purpose of the RCC Act by needlessly delaying its implementation.  A shorter time period, however, could prove unnecessarily difficult for providers to comply with.  As several commenters note, a 90-day phase-in period following the date by which intermediate providers must register with the Commission will provide an appropriate period of adjustment, allowing covered providers to renegotiate contracts with registered intermediate providers. See ANI Comments at 4; HD Tandem Reply at 5; Sprint Comments at 3.
  Furthermore, because our registry requires OMB approval and contains its own 30-day implementation period, covered providers should have approximately six-months, if not more, to come into compliance, which is about the same as the six-month phase-in period recently adopted by the Commission for the monitoring rule, which similarly required covered providers to “evaluate and renegotiate contracts with intermediate providers.” Second RCC Order at para. 50.
  The prohibition on use of unregistered intermediate providers will therefore go into effect 90 days after the date by which intermediate providers must register with the Commission. Once our registry rules are approved by OMB, intermediate providers will have 30 days to register with the Commission.  See infra para. 63.  Our rules regarding covered provider use of registered intermediate providers will take effect 90 days after the expiration of this 30-day initial registration period. 
   
IV. ORDER
44. USTelecom filed a petition to stay aspects of the April 17, 2018 Second RCC Order, Petition of USTelecom – The Broadband Association for Stay, WC Docket No. 13-39 (filed June 11, 2018), https://www.fcc.gov/ecfs/filing/1061186809842 (Petition for Stay or Petition).
 specifically the covered provider monitoring requirements adopted in the Second RCC Order, pending completion of the rulemaking process to implement the RCC Act. Petition for Stay at 2.
  For the reasons discussed below, we find that USTelecom has failed to meet its burden for a grant of a stay and accordingly deny its petition.  
A. Background
45. On June 11, 2018, USTelecom filed a petition to stay the monitoring rule for covered providers “until the effective date of rules governing Intermediate Providers adopted in response to the [Third RCC FNPRM].” Id.
  The Second RCC Order adopted a requirement, codified at 47 CFR § 64.2111, that covered providers monitor the performance of the intermediate providers to which they hand off calls, and, based on the results of such monitoring, take steps reasonably calculated to correct any identified performance problems with downstream intermediate providers. See Second RCC Order at paras. 17, 31.
  In adopting this requirement, we recognized that covered providers “will need some time to evaluate and renegotiate contracts with intermediate providers in order to comply with the monitoring requirement,” Id. at para. 50.
 and as a result, provided a six month phase-in period for section 64.2111 to come into effect. Id.
  At the same time, we adopted the Third RCC FNPRM, which proposed and sought comment on rules to implement the registry and service quality standards of the RCC Act, and sought comment on further modifications to our existing rural call completion rules, including the newly adopted monitoring rule. Third RCC FNPRM at para. 68.
   
46. USTelecom argues that absent a stay, covered providers will “unnecessarily be forced to incur the cost of renegotiating their vendor contracts multiple times, or be placed in a position where they risk . . . noncompliance with [section] 64.2111.” Petition for Stay at 4.
  NTCA filed an opposition to the Petition for Stay, Opposition of NTCA to Petition for Stay of USTelecom (filed June 19, 2018) (NTCA Opposition).  In addition, some commenters addressed the Petition for Stay in their Third RCC FNPRM reply comments.  See Verizon Reply at 6-7; NTCA Reply at 8-9.
 while ITTA filed comments in support. ITTA June 18, 2018 Comments.  
  
B. Discussion
47. To qualify for the extraordinary remedy of a stay, a petitioner must show that: (1) it is likely to prevail on the merits; (2) it will suffer irreparable harm absent the grant of preliminary relief; (3) other interested parties will not be harmed if the stay is granted; and (4) the public interest would favor grant of the stay.  Petition for Stay at 3 n.11; see also Washington Metro. Area Transit Comm’n v. Holiday Tours, Inc., 559 F.2d 841, 843 (D.C. Cir. 1977); Virginia Petroleum Jobbers Ass’n v. Federal Power Comm’n, 259 F.2d 921, 925 (D.C. Cir. 1958) (VA Petroleum Jobbers).
  The Commission’s consideration of each factor is weighed against the others, and no single factor is dispositive. In re Protecting the Privacy of Customers of Broadband and Other Telecomm. Servs., Order Granting Stay Petition in Part, 32 FCC Rcd 1793, 1796 (2017).
  USTelecom has not introduced arguments into the record regarding the first factor, therefore we do not consider it here. See Petition for Stay.
  Because we find that USTelecom has not shown that any of the remaining three factors weigh in favor of a stay, we conclude that USTelecom has failed to meet the test for this extraordinary remedy. 
1. USTelecom Has Failed to Demonstrate Irreparable Injury
48. We find that USTelecom’s claims that it “will be irreparably injured absent grant of the requested stay” Petition for Stay at 3.
 are unsupported by the record.  USTelecom rests its claims regarding irreparable injury on the theory that covered providers “will unnecessarily be forced to incur the cost of renegotiating their vendor contracts multiple times” if section 64.2111 becomes effective before we have established registry and service quality standards for intermediate providers pursuant to of the RCC Act.  
49. The record reflects disagreement as to whether multiple rounds of contractual negotiations will be required as a result of the monitoring rule coming into effect prior to full implementation of the RCC Act. Compare ITTA June 18, 2018 Comments at 3-4 with NTCA Opposition at 3-4.
  ITTA argues that covered provider contracts with intermediate providers “cannot be renegotiated or amended until all parties in the call chain have an understanding of the service quality standards to which intermediate providers will be subject.” ITTA June 18, 2018 Comments at 3-4.
  As NTCA points out, however, there are steps that covered providers can take in negotiating contracts to implement the monitoring requirement that could help to mitigate the need for re-negotiation and its attendant costs, including, for example, incorporating an express “change of law” provision to import whatever standards may thereafter be adopted by the Commission for intermediate providers. See NTCA Opposition at 4 (“In NTCA’s experience, such ‘change of law’ provision in telecommunications contracts are relatively standard fare, and should eliminate the risk of any potential ‘injury’ arising out of potential renegotiation.”).
  
50. Even assuming covered providers will in fact be required to undergo separate rounds of contractual negotiations with intermediate providers absent a stay, as USTelecom asserts, USTelecom has failed to meet the high bar required to demonstrate irreparable injury. NTCA June 19, 2018 Comments at 2.  USTelecom makes no attempt to quantify the costs associated with multiple rounds of contractual negotiations; it merely offers unsupported assertions that such an outcome would be “highly disruptive and burdensome.”  See Petition for Stay at 4; see also ITTA June 18, 2018 Comments at 4 (alleging that renegotiating vendor contracts will require “considerable . . . resources”).
  As a form of equitable relief, a stay generally is granted only where petitioners show that remedies at law—for example, the award of monetary damages—are insufficient. See Wisconsin Gas Co. v. F.E.R.C., 758 F.2d 669, 674 (D.C. Cir. 1985).
  For this reason, according to well-established judicial precedent, “economic loss does not, in and of itself, constitute irreparable harm,” and “[m]ere injuries, however substantial, in terms of money, time and energy necessarily expended in the absence of a stay are not enough.” Id. (quoting Virginia Petroleum Jobbers Ass'n v. FPC, 259 F.2d at 9250).
  Recoverable monetary loss may constitute an irreparable injury in narrow circumstances where “the loss threatens the very existence of the movant’s business;” Id.
 however, USTelecom makes no assertions to this effect. Petition for a Stay at 4-5 (arguing that covered provider costs “could potentially result in higher rates for end users”).

51. Moreover, to justify a stay of the Commission’s Second RCC Order, the alleged injury “must be both certain and great; it must be actual and not theoretical.” Wisconsin Gas Co. v. FERC, 758 F.2d 669, 674 (D.C. Cir. 1985).
  A stay is warranted only if “[t]he injury complained of is of such imminence that there is a clear and present need for equitable relief to prevent irreparable harm.” Chaplaincy of Full Gospel Churches v. England, 454 F.3d 290, 297 (D.C. Cir. 2006) (internal quotation marks omitted).
  USTelecom asserts that absent a stay, covered providers will be forced to “incur the cost of renegotiating their vendor contracts multiple times,” and that these costs, “which need not be incurred, could potentially result in higher rates for end users.” Petition for Stay at 4-5.
  We find that the speculative potential incurrence of an unquantified amount of costs to renegotiate contracts does not rise to the level of a “certain and great” injury. See NTCA Opposition at 3.
  For these reasons, we find that USTelecom has failed to demonstrate irreparable injury.     
2. USTelecom Has Failed to Demonstrate that a Stay Is in the Public Interest and Will Not Harm Other Parties
52. We also find that USTelecom has failed to demonstrate that granting a stay is in the public interest and will not harm other parties to the proceeding.  Indeed, we find that staying the effectiveness of section 64.2111 would be contrary to the public interest and would threaten harm to consumers by needlessly undermining the effectiveness of our rural call completion rules.  
53. We disagree with USTelecom’s suggestion that any compliance costs associated with prompt enforcement of our covered provider monitoring rule are “unnecessary in light of the fact that rural call completion complaints continue to fall.” Petition for Stay at 6.  
  Even assuming this were correct, Although USTelecom cites the Second RCC Order in support of this assertion, it misconstrues our findings.  As the Second RCC Order observes, “[t]rends in [rural call completion] complaints are mixed.” Second RCC Order at para. 9.  While carrier complaints have indeed fallen in the last several years, consumer complaints have increased, on a yearly basis, for much of this time.  Id.  Further, we note that rural carrier complaints filed with the Commission have increased significantly over this time last year.
 rural call completion issues continue to have significant ramifications for affected consumers, as we have repeatedly observed. See Second RCC Order at paras. 1, 14 (noting that “[t]he record in this proceeding and our complaint data establish that rural call completion issues persist”); see also SDTA Reply at 1; NTCA & WTA Aug. 28, 2017 Comments at 1-6 (discussing continuing problems related to rural call completion).
  Call completion problems in rural areas “have serious repercussions, imposing needless economic and personal costs, and potentially threatening public safety in local communities.” Second RCC Order at para. 1.
  In enacting the RCC Act, Congress and the President have clearly signaled that they agree with this assessment. See NTCA Opposition at 4-5; see also RCC Act, 132 Stat. at 329.
  For these reasons, solving rural call completion issues has been, and remains, a pressing concern for the Commission. See Second RCC Order at paras. 1-9. 
  
54. Despite its claims that “the public interest strongly favors a stay of [section 64.2111],” USTelecom offers little evidence in support of its argument.  USTelecom rests its claims that a stay would not harm other parties, including consumers, on the basis that the cost of multiple rounds of contract renegotiation “could potentially result in higher rates for end users.” Petition for Stay at 4-5.
  As NTCA observes, however, both the existence of these costs, and their ultimate impact on consumers in the form of higher prices, are speculative. See NTCA Opposition at 5.
  As noted above, USTelecom fails to attempt to quantify these costs. See supra para. 51.

55. We find that the significant public interest benefits resulting from effective rural call completion rules outweigh the hypothetical financial harms suggested by USTelecom. See NTCA Opposition at 5.
  As NTCA observes, the public has a clear interest in rules that address rural call completion issues. See Id.
  Rural carriers, too, have a substantial interest in prompt enforcement of our rules, as their business interests are harmed when calls initiated elsewhere fail to reach their intended destination.  The monitoring rule is a critical component of our rural call completion regulatory regime. See Second RCC Order at paras. 15-17.
  In adopting the Second RCC Order, we considered, but declined to adopt, a longer phase-in period for section 64.2111, finding that “the monitoring requirement addresses the ongoing call completion problems faced by rural Americans, and delay only postpones when rural Americans will see the fruit of this solution.” See id. at para. 50.
  The monitoring rule is an obligation of covered providers to ensure that calls they initiate to rural areas are in fact completed.  This obligation complements, but exists independently of, the registry and service quality obligations contained in the RCC Act and any rules the Commission adopts to implement that Act. See id. at paras. 33, 111. 
  For the foregoing reasons, we deny USTelecom’s request for a stay of section 64.2111 pending full implementation of the RCC Act.   
V. PROCEDURAL MATTERS
56. Final Regulatory Flexibility Analysis.  As required by the Regulatory Flexibility Act of 1980, see 5 U.S.C. § 604, the Commission has prepared a Final Regulatory Flexibility Analysis (FRFA) of the possible significant economic impact on small entities of the policies and rules, as proposed, addressed in this Third Report and Order.  The FRFA is set forth in Appendix B.  The Commission will send a copy of this Third Report and Order, including the FRFA, to the Chief Counsel for Advocacy of the Small Business Administration (SBA).
57. Paperwork Reduction Act.  This Third Report and Order contains new or modified information collection requirements subject to the Paperwork Reduction Act of 1995 (PRA), Public Law 104-13.  It will be submitted to the Office of Management and Budget (OMB) for review under section 3507(d) of the PRA, 44 U.S.C. § 3507.  OMB, the general public, and other Federal agencies are invited to comment on the revised information collection requirements contained in this proceeding.  In addition, we note that pursuant to the Small Business Paperwork Relief Act of 2002, Public Law 107-198, see 44 U.S.C. § 3506(c)(4), we previously sought specific comment on how the Commission might further reduce the information collection burden for small business concerns with fewer than 25 employees.  
58. In the present document, we require intermediate providers to provide and update as needed the following information on a publicly available online registry maintained by the Commission:  (1) the intermediate provider’s business name(s) and primary address; (2) the name(s), telephone number(s), email address(es), and business address(es) of the intermediate provider’s regulatory contact and/or designated agent for service of process; (3) all business names that the intermediate provider has used in the past; (4) the state(s) in which the intermediate provider provides service; (5) the name, title, business address, telephone number, and email address of at least one person as well as the department within the company responsible for addressing rural call completion issues a telephone number and email address for the express purpose of receiving and responding promptly to any rural call completion issues, and; (6) the name(s), business address, business telephone number(s), and email address for the appropriate executive leadership contact, such as the chief executive officer, chief operating officer, or owner(s) of the intermediate provider, or persons performing an equivalent function.  We have assessed the effects of this rule, and find that any burden on small businesses will be minimal because this is a low-cost measure to facilitate industry collaboration to address call completion issues.
59. Congressional Review Act.  The Commission will send a copy of this Third Report and Order to Congress and the Government Accountability Office pursuant to the Congressional Review Act, see 5 U.S.C. § 801(a)(1)(A).
60. Contact Person.  For further information about this rulemaking proceeding, please contact Zach Ross, FCC Wireline Competition Bureau, Competition Policy Division, Room 5-C211, 445 12th Street, S.W., Washington, D.C. 20554, at (202) 418-1033 or Zachary.Ross@fcc.gov.
VI. ORDERING CLAUSES 
61. Accordingly, IT IS ORDERED that, pursuant to sections 1, 4(i), 201(b), 202(a), 217, and 262 of the Communications Act of 1934, as amended, 47 U.S.C. §§ 151, 154(i), 201(b), 202(a), 217, and 262, this Third Report and Order and Order IS ADOPTED.
62. IT IS FURTHER ORDERED that Part 64 of the Commission’s rules ARE AMENDED as set forth in Appendix A.
63. IT IS FURTHER ORDERED that, pursuant to sections 1.4(b)(1) and 1.103(a) of the Commission’s rules, 47 CFR §§ 1.4(b)(1), 1.103(a), this Third Report and Order SHALL BE EFFECTIVE 30 days after publication of a summary in the Federal Register, except for the addition of section 64.2115 to the Commission’s rules, which will become effective 30 days after the announcement in the Federal Register of Office of Management and Budget (OMB) approval and an effective date of the rules.
64. IT IS FURTHER ORDERED that pursuant to the authority contained in sections 1, 4(i), 201(b), 202(a), 217, 218, 220(a), 251(a), and 262 of the Communications Act of 1934, as amended, 47 U.S.C. §§ 151, 154(i), 201(b), 202(a), 217, 218, 220(a), 251(a), and 262, USTelecom’s Petition for Stay filed on June 11, 2018 in WC Docket No. 13-39 is DENIED. 
65. IT IS FURTHER ORDERED that the Commission SHALL SEND a copy of this Third Report and Order to Congress and to the Government Accountability Office pursuant to the Congressional Review Act, see 5 U.S.C. § 801(a)(1)(A).
66. IT IS FURTHER ORDERED that the Commission’s Consumer and Governmental Affairs Bureau, Reference Information Center, SHALL SEND a copy of this Third Report and Order, including the Final Regulatory Flexibility Analysis and Initial Regulatory Flexibility Analysis, to the Chief Counsel for Advocacy of the Small Business Administration.
 
						FEDERAL COMMUNICATIONS COMMISSION




						Marlene H. Dortch
						Secretary



24

APPENDIX A

Final Rules
The Federal Communications Commission proposes to amend Part 64 of Title 47 of the Code of Federal Regulations as follows:
PART 64 – MISCELLANEOUS RULES RELATING TO COMMON CARRIERS
1. 	Amend the authority citation for part 64 to read as follows:
Authority: 47 U.S.C. §§ 154, 202, 225, 251(e), 254(k), 262, 403(b)(2)(B), (c), 616, 620, Pub.L. 104–104, 110 Stat. 56. Interpret or apply 47 U.S.C. §§ 201, 202, 217, 218, 220, 222, 225, 226, 227, 228, 251(a), 251(e), 254(k), 262 616, 620, and the Middle Class Tax Relief and Job Creation Act of 2012, Pub.L. 112–96, unless otherwise noted.

2. 	Amend section 64.2101 by adding a definition of “covered voice communication” and revising the definition of “intermediate provider” to read as follows:
§ 64.2101 Definitions.
*  *  *  *  *
Covered voice communication.  The term “covered voice communication” means a voice communication (including any related signaling information) that is generated—
(a)  from the placement of a call from a connection using a North American Numbering Plan resource or a call placed to a connection using such a numbering resource; and
(b)  through any service provided by a covered provider.
*  *  *  *  *
Intermediate provider.  The term “intermediate provider” means any entity that—
(a)  enters into a business arrangement with a covered provider or other intermediate provider for 	the specific purpose of carrying, routing, or transmitting voice traffic that is generated from the placement of a call placed—
(1)  from an end user connection using a North American Numbering Plan resource; or
(2)  to an end user connection using such a numbering resource; and
(b)  does not itself, either directly or in conjunction with an affiliate, serve as a covered provider in the context of originating or terminating a given call.

3. 	Add section 64.2115 to subpart V to read as follows:
§ 64.2115  Registration of Intermediate Providers.
(a)  Registration.  An intermediate provider that offers or holds itself out as offering the capability to transmit covered voice communications from one destination to another and that charges any rate to any other entity (including an affiliated entity) for the transmission shall register with the Commission in accordance with this section.  The intermediate provider shall provide the following information in its registration:
(1)  The intermediate provider’s business name(s) and primary address;
(2)  The name(s), telephone number(s), email address(es), and business address(es) of the intermediate provider’s regulatory contact and/or designated agent for service of process;
(3)  All business names that the intermediate provider has used in the past;
(4)  The state(s) in which the intermediate provider provides service; 
(5)  The name, title, business address, telephone number, and email address of at least one person as well as the department within the company responsible for addressing rural call completion issues, and;
(6) the name(s), business address, and business telephone number(s) for an executive leadership contact, such as the chief executive officer, chief operating officer, or owner(s) of the intermediate provider, or persons performing an equivalent function, who directs or manages the entity.   
(b)  Submission of registration.  An intermediate provider that is subject to the registration requirement in paragraph (a) of this section shall submit the information described therein to the intermediate provider registry on the Commission’s website.  The registration shall be made under penalty of perjury.
(c)  Changes in information.  An intermediate provider must update its submission to the intermediate provider registry on the Commission’s website within 10 business days of any change to the information it must provide pursuant to paragraph (a) of this section.  

4.  Add section 64.2117 to subpart V to read as follows:
§ 64.2117  Use of Registered Intermediate Providers.
(a) A covered provider shall not use an intermediate provider to carry, route, or transmit covered voice communications unless such intermediate provider is registered pursuant to section 64.2115 of this subpart.  
(b) Force majeure exemption. 
(1)  If, due to a force majeure for which a covered provider has instituted a disaster recovery plan, there are no registered intermediate providers available to carry, route, or transmit covered voice communications, a covered provider need not comply with subsection (a) of this section for a period of up to 180 days with respect to those covered voice communications.  A covered provider shall submit to the Commission a certification, signed by a corporate officer or official with authority to bind the corporation, and knowledge of the details of the covered provider’s inability to comply with our rules, explaining the circumstances justifying an exemption under this section as soon as practicable.  
 (2)  A covered provider seeking an extension of the exemption described in paragraph (b)(1) must submit a request for an extension of the exemption period to the Commission. Such an extension request shall, at minimum, include a status report on the covered provider’s attempts to comply with paragraph (a) of this section; and a statement detailing how the covered provider intends to ensure that calls are completed notwithstanding the unavailability of registered intermediate providers.
(3)  For purposes of this section, “force majeure” means a highly disruptive event beyond the control of the covered provider, such as a natural disaster or a terrorist attack.
(4)  For purposes of this section, “disaster recovery plan” means a disaster response plan developed by the covered provider for the purpose of responding to a force majeure event.


	Federal Communications Commission	FCC 18-120


APPENDIX B

Final Regulatory Flexibility Analysis

1. As required by the Regulatory Flexibility Act of 1980, as amended (RFA), See 5 U.S.C. § 603.  The RFA, see 5 U.S.C. §§ 601-612, has been amended by the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), Pub. L. No. 104-121, Title II, 110 Stat. 847 (1996).  
 an Initial Regulatory Flexibility Analysis (IRFA) was incorporated into the Third Further Notice of Proposed Rulemaking (Third RCC FNRPM) for the Rural Call Completion proceeding. See Rural Call Completion, Second Report and Order and Third Further Notice of Proposed Rulemaking, FCC 18-45, Appx. E (Apr. 17, 2018).
  The Commission sought written public comment on the proposals in the Third RCC FNRPM, including comment on the IRFA.  The Commission received no comments on the IRFA.  Because the Commission amends its rules in this Order, the Commission has included this Final Regulatory Flexibility Analysis (FRFA).  This present FRFA conforms to the RFA. See 5 U.S.C. § 604.

A. Need for, and Objectives of, the Rules
2. In this Order, we revise our rules to better address ongoing problems in the completion of long-distance telephone calls to rural areas.  Specifically, we require intermediate providers to register in a publicly available intermediate provider registry, maintained by the Commission.  We also require that covered providers not use unregistered providers to carry, route, or otherwise transmit covered voice communications, except in cases of force majeure.  The requirements we adopt today implement the Improving Rural Call Quality and Reliability Act of 2017 (RCC Act). See generally Improving Rural Call Quality and Reliability Act of 2017, Pub. L. No. 115-129, 132 Stat. 329, 329 (2018) (codified at 47 U.S.C. § 262).
  The RCC Act directs us to (1) promulgate registration requirements for intermediate providers within 180 days of enactment, and create a registry for such providers on our website; and (2) establish service quality standards for intermediate providers within one year of enactment. See generally Improving Rural Call Quality and Reliability Act of 2017, Pub. L. No. 115-129, 132 Stat. 329, 329 (2018) (codified at 47 U.S.C. § 262).

3. In implementing the RCC Act, first, we adopt a new rule requiring “intermediate providers” “The term ‘intermediate provider’ means any entity that—(a)  enters into a business arrangement with a covered provider or other intermediate provider for 	the specific purpose of carrying, routing, or transmitting voice traffic that is generated from the 	placement of a call placed—(1)  from an end user connection using a North American Numbering Plan resource; or (2)  to an end user connection using such a numbering resource; and (b)  does not itself, either directly or in conjunction with an affiliate, serve as a covered provider in the context of originating or terminating a given call.” 47 CFR § 64.2101 (as amended by this proceeding).
 to provide and update as needed the following information on a publicly available online registry maintained by the Commission:  (1) the intermediate provider’s business name(s) and primary address; (2) the name(s), telephone number(s), email address(es), and business address(es) of the intermediate provider’s regulatory contact and/or designated agent for service of process; (3) all business names that the intermediate provider has used in the past; (4) the state(s) in which the intermediate provider provides service; (5) the name, title, business address, telephone number, and email address of at least one person as well as the department within the company responsible for addressing rural call completion issues a telephone number and email address for the express purpose of receiving and responding promptly to any rural call completion issues, and; (6) the name(s), business address, and business telephone number(s) for an executive leadership contact, such as the chief executive officer, chief operating officer, or owner(s) of the intermediate provider, or persons performing an equivalent function, who directs or manages the entity.       
4. This Order also requires intermediate providers to register in our publicly available intermediate provider registry within 30 days after a Public Notice announcing the approval by the Office of Management and Budget of the final rules establishing the registry; prohibits covered providers from using any unregistered intermediate providers in the path of a given call; and requires covered providers to be responsible for knowing or obtaining knowledge of the identity of all intermediate providers in a call path.  To ease burdens covered providers may experience during force majeure, covered providers are exempted from the prohibition on unregistered providers during such events, for an initial period of up to 180 days.  Covered providers may seek an extension of this exemption period upon submission of a status report on the covered provider’s attempts to comply with our rules, and a statement detailing how the covered provider intends to ensure that calls are completed notwithstanding the unavailability of registered intermediate providers.
5. We conclude these rules and procedures are necessary to inject transparency and accountability into the call routing system, “to ensure the integrity of voice communications and to prevent unjust or unreasonable discrimination among areas of the United States in the delivery of such communications.” Improving Rural Call Quality and Reliability Act of 2017, Pub. L. No. 115-129, 132 Stat. 329, 329 (2018).

B. Summary of Significant Issues Raised by Public Comments in Response to the IRFA
6. The Commission did not receive comments specifically addressing the rules and policies proposed in the IRFA. 
C. Response to Comments by the Chief Counsel for Advocacy of the Small Business Administration
7. The Chief Counsel did not file any comments in response to this proceeding.
D. Description and Estimate of the Number of Small Entities to Which the Rules Will Apply
8. The RFA directs agencies to provide a description and, where feasible, an estimate of the number of small entities that may be affected by the final rules adopted pursuant to the Third RCC FNPRM. See 5 U.S.C. § 604(a)(4).
  The RFA generally defines the term “small entity” as having the same meaning as the terms “small business,” “small organization,” and “small governmental jurisdiction.” See 5 U.S.C. § 601(6).
  In addition, the term “small business” has the same meaning as the term “small-business concern” under the Small Business Act. See 5 U.S.C. § 601(3) (incorporating by reference the definition of “small-business concern” in the Small Business Act, 15 U.S.C. § 632).  Pursuant to 5 U.S.C. § 601(3), the statutory definition of a small business applies “unless an agency, after consultation with the Office of Advocacy of the Small Business Administration and after opportunity for public comment, establishes one or more definitions of such term which are appropriate to the activities of the agency and publishes such definition(s) in the Federal Register.”
  A “small-business concern” is one which:  (1) is independently owned and operated; (2) is not dominant in its field of operation; and (3) satisfies any additional criteria established by the SBA. See 15 U.S.C. § 632.

9. Small Businesses, Small Organizations, Small Governmental Jurisdictions.  Our actions, over time, may affect small entities that are not easily categorized at present.  We therefore describe here, at the outset, three comprehensive small entity size standards that could be directly affected herein. See 5 U.S.C. § 601(3)-(6).
  First, while there are industry specific size standards for small businesses that are used in the regulatory flexibility analysis, according to data from the SBA’s Office of Advocacy, in general a small business is an independent business having fewer than 500 employees. See SBA, Office of Advocacy, “Frequently Asked Questions, Question 1 – What is a small business?” https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf (June 2016).
  These types of small businesses represent 99.9 percent of all businesses in the United States which translates to 28.8 million businesses. See SBA, Office of Advocacy, “Frequently Asked Questions, Question 2- How many small business are there in the U.S.?” https://www.sba.gov/sites/default/files/advocacy/SB-FAQ-2016_WEB.pdf (June 2016).
  
10. Next, the type of small entity described as a “small organization” is generally “any not-for-profit enterprise which is independently owned and operated and is not dominant in its field.” 5 U.S.C. § 601(4).
  Nationwide, as of Aug 2016, there were approximately 356,494 small organizations based on registration and tax data filed by nonprofits with the Internal Revenue Service (IRS). Data from the Urban Institute, National Center for Charitable Statistics (NCCS) reporting on nonprofit organizations registered with the IRS was used to estimate the number of small organizations.  Reports generated using the NCCS online database indicated that as of August 2016 there were 356,494 registered nonprofits with total revenues of less than $100,000.   Of this number, 326,897 entities filed tax returns with 65,113 registered nonprofits reporting total revenues of $50,000 or less on the IRS Form 990-N for Small Exempt Organizations and 261,784 nonprofits reporting total revenues of $100,000 or less on some other version of the IRS Form 990 within 24 months of the August 2016 data release date.  See http://nccsweb.urban.org/tablewiz/bmf.php where the report showing this data can be generated by selecting the following data fields: Show: “Registered Nonprofit Organizations”; By: “Total Revenue Level (years 1995, Aug to 2016, Aug)”; and For: “2016, Aug” then selecting “Show Results”.
  
11. Finally, the small entity described as a “small governmental jurisdiction” is defined generally as “governments of cities, counties, towns, townships, villages, school districts, or special districts, with a population of less than fifty thousand.” 5 U.S.C. §601(5).
  U.S. Census Bureau data from the 2012 Census of Governments See 13 U.S.C. § 161. The Census of Government is conducted every five (5) years compiling data for years ending with “2” and “7”. See also Program Description Census of Government https://factfinder.census.gov/faces/affhelp/jsf/pages/metadata.xhtml?lang=en&type=program&id=program.en.COG#.
 indicates that there were 90,056 local governmental jurisdictions consisting of general purpose governments and special purpose governments in the United States. See U.S. Census Bureau, 2012 Census of Governments, Local Governments by Type and State: 2012 - United States-States. https://factfinder.census.gov/bkmk/table/1.0/en/COG/2012/ORG02.US01. Local governmental jurisdictions are classified in two categories - General purpose governments (county, municipal and town or township) and Special purpose governments (special districts and independent school districts).   
  Of this number there were 37, 132 General purpose governments (county See U.S. Census Bureau, 2012 Census of Governments, County Governments by Population-Size Group and State: 2012 - United States-States. https://factfinder.census.gov/bkmk/table/1.0/en/COG/2012/ORG06.US01.  There were 2,114 county governments with populations less than 50,000. 
, municipal and town or township See U.S. Census Bureau, 2012 Census of Governments, Subcounty General-Purpose Governments by Population-Size Group and State: 2012 - United States – States. https://factfinder.census.gov/bkmk/table/1.0/en/COG/2012/ORG07.US01.  There were 18,811 municipal and 16,207 town and township governments with populations less than 50,000. 
) with populations of less than 50,000 and 12,184 Special purpose governments (independent school districts See U.S. Census Bureau, 2012 Census of Governments, Elementary and Secondary School Systems by Enrollment-Size Group and State: 2012 - United States-States. https://factfinder.census.gov/bkmk/table/1.0/en/COG/2012/ORG11.US01. There were 12,184 independent school districts with enrollment populations less than 50,000.
 and special districts See U.S. Census Bureau, 2012 Census of Governments, Special District Governments by Function and State: 2012 - United States-States. https://factfinder.census.gov/bkmk/table/1.0/en/COG/2012/ORG09.US01.  The U.S. Census Bureau data did not provide a population breakout for special district governments.
) with populations of less than 50,000.  The 2012 U.S. Census Bureau data for most types of governments in the local government category show that the majority of these governments have populations of less than 50,000. See U.S. Census Bureau, 2012 Census of Governments, County Governments by Population-Size Group and State: 2012 - United States-States - https://factfinder.census.gov/bkmk/table/1.0/en/COG/2012/ORG06.US01;   Subcounty General-Purpose Governments by Population-Size Group and State: 2012 - United States–States - https://factfinder.census.gov/bkmk/table/1.0/en/COG/2012/ORG07.US01; and Elementary and Secondary School Systems by Enrollment-Size Group and State: 2012 - United States-States. https://factfinder.census.gov/bkmk/table/1.0/en/COG/2012/ORG11.US01. While U.S. Census Bureau data did not provide a population breakout for special district governments, if the population of less than 50,000 for this category of local government is consistent with the other types of local governments the majority of the 38, 266 special district governments have populations of less than 50,000.
 Based on these data we estimate that at least 49,316 local government jurisdictions fall in the category of “small governmental jurisdictions.” Id.

12. Wired Telecommunications Carriers.  The U.S. Census Bureau defines this industry as “establishments primarily engaged in operating and/or providing access to transmission facilities and infrastructure that they own and/or lease for the transmission of voice, data, text, sound, and video using wired communications networks. Transmission facilities may be based on a single technology or a combination of technologies.  Establishments in this industry use the wired telecommunications network facilities that they operate to provide a variety of services, such as wired telephony services, including VoIP services, wired (cable) audio and video programming distribution, and wired broadband internet services.  By exception, establishments providing satellite television distribution services using facilities and infrastructure that they operate are included in this industry.” U.S. Census Bureau, 2012 NAICS Definitions, “517110 Wired Telecommunications Categories,” http://www.census.gov/cgi-bin/sssd/naics/naicsrch.
  The SBA has developed a small business size standard for Wired Telecommunications Carriers, which consists of all such companies having 1,500 or fewer employees. See 13 CFR § 120.201, NAICS Code 517110.
  Census data for 2012 show that there were 3,117 firms that operated that year. Of this total, 3,083 operated with fewer than 1,000 employees. 2012 U.S. Economic Census, NAICS Code 517110, http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ2&prodType=table.
  Thus, under this size standard, the majority of firms in this industry can be considered small.
13. Local Exchange Carriers (LECs).  Neither the Commission nor the SBA has developed a size standard for small businesses specifically applicable to local exchange services.  The closest applicable NAICS Code category is for Wired Telecommunications Carriers, as defined in paragraph 11 of this FRFA.  Under that size standard, such a business is small if it has 1,500 or fewer employees. See 13 CFR § 120.201, 2012 U.S. Economic Census, NAICS Code 517110, http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ2&prodType=table.
  Census data for 2012 show that there were 3,117 firms that operated that year.  Of this total, 3,083 operated with fewer than 1,000 employees. 2012 U.S. Economic Census, NAICS Code 517110, http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ2&prodType=table.
  The Commission therefore estimates that most providers of local exchange carrier service are small entities that may be affected by the rules adopted.
14. Incumbent Local Exchange Carriers (incumbent LECs).  Neither the Commission nor the SBA has developed a small business size standard specifically for incumbent local exchange services.  The closest applicable NAICS Code category is Wired Telecommunications Carriers as defined in paragraph 11 of this FRFA.  Under that size standard, such a business is small if it has 1,500 or fewer employees. See 13 CFR § 120.201, NAICS Code 517110.
  According to Commission data, 3,117 firms operated in that year. Of this total, 3,083 operated with fewer than 1,000 employees. 2012 U.S. Economic Census, NAICS Code 517110, http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ2&prodType=table.
  Consequently, the Commission estimates that most providers of incumbent local exchange service are small businesses that may be affected by the rules and policies adopted.  One thousand three hundred and seven (1,307) Incumbent Local Exchange Carriers reported that they were incumbent local exchange service providers. See Trends in Telephone Service, Federal Communications Commission, Wireline Competition Bureau, Industry Analysis and Technology Division at Table 5.3 (Sept. 2010) (Trends in Telephone Service).
  Of this total, an estimated 1,006 have 1,500 or fewer employees. Id.

15. Competitive Local Exchange Carriers (competitive LECs), Competitive Access Providers (CAPs), Shared-Tenant Service Providers, and Other Local Service Providers.  Neither the Commission nor the SBA has developed a small business size standard specifically for these service providers.  The appropriate NAICS Code category is Wired Telecommunications Carriers, as defined in paragraph 11 of this FRFA.  Under that size standard, such a business is small if it has 1,500 or fewer employees.  U.S. Census data for 2012 indicate that 3,117 firms operated during that year. Of that number, 3,083 operated with fewer than 1,000 employees.http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
  Based on this data, the Commission concludes that the majority of Competitive LECs, CAPs, Shared-Tenant Service Providers, and Other Local Service Providers are small entities.  According to Commission data, 1,442 carriers reported that they were engaged in the provision of either competitive local exchange services or competitive access provider services. See Trends in Telephone Service, at tbl. 5.3.
  Of these 1,442 carriers, an estimated 1,256 have 1,500 or fewer employees.  In addition, 17 carriers have reported that they are Shared-Tenant Service Providers, and all 17 are estimated to have 1,500 or fewer employees. Id.
  In addition, 72 carriers have reported that they are Other Local Service Providers. Id.
  Of this total, 70 have 1,500 or fewer employees. Id.
  Consequently, the Commission estimates that most providers of competitive local exchange service, competitive access providers, Shared-Tenant Service Providers, and Other Local Service Providers are small entities that may be affected by the adopted rules. 
16. Interexchange Carriers (IXCs).  Neither the Commission nor the SBA has developed a definition for Interexchange Carriers.  The closest NAICS Code category is Wired Telecommunications Carriers as defined in paragraph 11 of this FRFA. The applicable size standard under SBA rules is that such a business is small if it has 1,500 or fewer employees. 13 CFR § 121.201, 2012 U.S. Economic Census, NAICS code 517110, http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ2&prodType=table.
  According to Commission data, 359 companies reported that their primary telecommunications service activity was the provision of interexchange services. See Trends in Telephone Service, at tbl. 5.3.
  Of this total, an estimated 317 have 1,500 or fewer employees and 42 have more than 1,500 employees. Id.
  Consequently, the Commission estimates that the majority of interexchange service providers are small entities that may be affected by rules adopted.
17. Local Resellers.  The SBA has developed a small business size standard for the category of Telecommunications Resellers.  The Telecommunications Resellers industry comprises establishments engaged in purchasing access and network capacity from owners and operators of telecommunications networks and reselling wired and wireless telecommunications services (except satellite) to businesses and households.  Establishments in this industry resell telecommunications; they do not operate transmission facilities and infrastructure. Mobile virtual network operators (MVNOs) are included in this industry. 2012 U.S. Economic Census, https://www.census.gov/cgi-bin/sssd/naics/naicsrch?input=517911&search=2012+NAICS+Search&search=2012.
  Under that size standard, such a business is small if it has 1,500 or fewer employees. 13 CFR § 121.201, 2012 U.S. Economic Census, NAICS code 517911.
  Census data for 2012 show that 1,341 firms provided resale services during that year.  Of that number, all operated with fewer than 1,000 employees. U.S. Census Bureau, 2012 Economic Census, Subject Series:  Information, “Establishment and Firm Size,” NAICS code 517911.
  Thus, under this category and the associated small business size standard, the majority of these prepaid calling card providers can be considered small entities.
18. Toll Resellers.  The Commission has not developed a definition for Toll Resellers.  The closest NAICS Code Category is Telecommunications Resellers.  The Telecommunications Resellers industry comprises establishments engaged in purchasing access and network capacity from owners and operators of telecommunications networks and reselling wired and wireless telecommunications services (except satellite) to businesses and households.  Establishments in this industry resell telecommunications; they do not operate transmission facilities and infrastructure.  Mobile virtual network operators (MVNOs) are included in this industry. 2012 U.S. Economic Census, https://www.census.gov/cgi-bin/sssd/naics/naicsrch?input=517911&search=2012+NAICS+Search&search=2012.
  The SBA has developed a small business size standard for the category of Telecommunications Resellers. 13 CFR § 121.201, NAICS code 517911.
  Under that size standard, such a business is small if it has 1,500 or fewer employees. 2012 U.S. Economic Census, NAICs Code 517911, http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
  Census data for 2012 show that 1,341 firms provided resale services during that year.  Of that number, 1,341 operated with fewer than 1,000 employees. Id.
  Thus, under this category and the associated small business size standard, the majority of these resellers can be considered small entities.  According to Commission data, 881 carriers have reported that they are engaged in the provision of toll resale services. Trends in Telephone Service, at tbl. 5.3.
  Of this total, an estimated 857 have 1,500 or fewer employees. Id.
  Consequently, the Commission estimates that the majority of toll resellers are small entities.
19. Other Toll Carriers.  Neither the Commission nor the SBA has developed a definition for small businesses specifically applicable to Other Toll Carriers.  This category includes toll carriers that do not fall within the categories of interexchange carriers, operator service providers, prepaid calling card providers, satellite service carriers, or toll resellers.  The closest applicable NAICS Code category is for Wired Telecommunications Carriers as defined above.  Under the applicable SBA size standard, such a business is small if it has 1,500 or fewer employees. 13 CFR § 121.201, 2012 U.S. Economic Census, NAICS Code 517110, http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ2&prodType=table.
  Census data for 2012 show that there were 3,117 firms that operated that year.  Of this total, 3,083 operated with fewer than 1,000 employees. 2012 U.S. Economic Census, http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
  Thus, under this category and the associated small business size standard, the majority of Other Toll Carriers can be considered small.  According to internally developed Commission data, 284 companies reported that their primary telecommunications service activity was the provision of other toll carriage. Trends in Telephone Service, at tbl. 5.3.
  Of these, an estimated 279 have 1,500 or fewer employees. Id.
  Consequently, the Commission estimates that most Other Toll Carriers are small entities that may be affected by rules adopted pursuant to the Third RCC FNRPM.
20. Prepaid Calling Card Providers.  The SBA has developed a definition for small businesses within the category of Telecommunications Resellers.  Under that SBA definition, such a business is small if it has 1,500 or fewer employees. 13 CFR § 121.201, 2012 U.S. Economic Census, NAICS Code 517110, http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ2&prodType=table.
  According to the Commission's Form 499 Filer Database, 500 companies reported that they were engaged in the provision of prepaid calling cards. See http://apps.fcc.gov/cgb/form499/499a.cfm (last visited Mar. 22, 2018).
  The Commission does not have data regarding how many of these 500 companies have 1,500 or fewer employees.  Consequently, the Commission estimates that there are 500 or fewer prepaid calling card providers that may be affected by the rules.
21. Wireless Telecommunications Carriers (except Satellite).  This industry comprises establishments engaged in operating and maintaining switching and transmission facilities to provide communications via the airwaves, such as cellular services, paging services, wireless internet access, and wireless video services. 2012 U.S. Economic Census, NAICS Code 517210, https://www.census.gov/econ/isp/sampler.php?naicscode=517210&naicslevel=6#. 
  The appropriate size standard under SBA rules is that such a business is small if it has 1,500 or fewer employees.  For this industry, Census data for 2012 show that there were 967 firms that operated for the entire year. Of this total, 955 firms had fewer than 1,000 employees. 2012 U.S. Economic Census, http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
  Thus under this category and the associated size standard, the Commission estimates that the majority of wireless telecommunications carriers (except satellite) are small entities.  Similarly, according to internally developed Commission data, 413 carriers reported that they were engaged in the provision of wireless telephony, including cellular service, Personal Communications Service (PCS), and Specialized Mobile Radio (SMR) services. See Trends in Telephone Service, at tbl. 5.3.
  Of this total, an estimated 261 have 1,500 or fewer employees. Id.
  Consequently, the Commission estimates that approximately half of these firms can be considered small.  Thus, using available data, we estimate that the majority of wireless firms can be considered small.  
22. Wireless Communications Services.  This service can be used for fixed, mobile, radiolocation, and digital audio broadcasting satellite uses.  The Commission defined “small business” for the wireless communications services (WCS) auction as an entity with average gross revenues of $40 million for each of the three preceding years, and a “very small business” as an entity with average gross revenues of $15 million for each of the three preceding years. Amendment of the Commission’s Rules to Establish Part 27, the Wireless Communications Service (WCS), GN Docket No. 96-228, Report and Order, 12 FCC Rcd 10785, 10879, para. 194 (1997).
  The SBA has approved these definitions. See Letter from Aida Alvarez, Administrator, SBA, to Amy Zoslov, Chief, Auctions and Industry Analysis Division, Wireless Telecommunications Bureau, FCC (filed Dec. 2, 1998) (Alvarez Letter 1998).
  
23. Wireless Telephony.  Wireless telephony includes cellular, personal communications services, and specialized mobile radio telephony carriers.  As noted, the SBA has developed a small business size standard for Wireless Telecommunications Carriers (except Satellite). 13 CFR § 121.201, 2012 U.S. Economic Census, NAICS code 517210.
  Under the SBA small business size standard, a business is small if it has 1,500 or fewer employees. Id.
  According to Commission data, 413 carriers reported that they were engaged in wireless telephony. Trends in Telephone Service, tbl. 5.3.
  Of these, an estimated 261 have 1,500 or fewer employees and 152 have more than 1,500 employees. Id.
  Therefore, a little less than one third of these entities can be considered small.
24. Cable and Other Subscription Programming.  This industry comprises establishments primarily engaged in operating studios and facilities for the broadcasting of programs on a subscription or fee basis.  The broadcast programming is typically narrowcast in nature (e.g. limited format, such as news, sports, education, or youth-oriented).  These establishments produce programming in their own facilities or acquire programming from external sources.  The programming material is usually delivered to a third party, such as cable systems or direct-to-home satellite systems, for transmission to viewers. See 2012 U.S. Economic Census, https://www.census.gov/agi-bin/ssd/naics/naicsrch.
 The SBA has established a size standard for this industry stating that a business in this industry is small if it has 1,500 or fewer employees. 13 CFR § 121.201; 20116 NAICSs Code 515210. 
  The 2012 Economic Census indicates that 367 firms were operational for that entire year.  Of this total, 357 operated with less than 1,000 employees. See 2012 U.S. Economic Census, http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ5&prodType=table.
  Accordingly we conclude that a substantial majority of firms in this industry are small under the applicable SBA size standard.
25. Cable Companies and Systems (Rate Regulation). The Commission has developed its own small business size standards for the purpose of cable rate regulation.  Under the Commission’s rules, a “small cable company” is one serving 400,000 or fewer subscribers nationwide. 47 CFR § 76.901(e)
  Industry data indicate that there are currently 4,600 active cable systems in the United States. Federal Communications Commission, Assessment and Collection of Regulatory Fees for Fiscal Year 2014; Assessment and Collection of Regulatory Fees for Fiscal Year 2013; and Procedures for Assessment and Collection of Regulatory Fees, 80 Fed. Reg. 66,815 (Oct. 30, 2015) (citing August 15, 2015 Report from the Media Bureau based on data contained in the Commission’s Cable Operations and Licensing System (COALS).  See www.fcc.gov/coals.
  Of this total, all but nine cable operators nationwide are small under the 400,000-subscriber size standard. See SNL KAGAN at https://www.snl.com/interactiveX/MyInteractive.aspx?mode=4&CDID=A-821-38606&KLPT=8 (subscription required). 
  In addition, under the Commission's rate regulation rules, a “small system” is a cable system serving 15,000 or fewer subscribers. 47 CFR § 76.901(c).
  Current Commission records show 4,600 cable systems nationwide. See supra note 215.
  Of this total, 3,900 cable systems have fewer than 15,000 subscribers, and 700 systems have 15,000 or more subscribers, based on the same records. Id. 
  Thus, under this standard as well, we estimate that most cable systems are small entities. 
26. Cable System Operators (Telecom Act Standard).  The Communications Act of 1934, as amended, also contains a size standard for small cable system operators, which is “a cable operator that, directly or through an affiliate, serves in the aggregate fewer than one percent of all subscribers in the United States and is not affiliated with any entity or entities whose gross annual revenues in the aggregate exceed $250,000,000 are approximately 52,403,705 cable video subscribers in the United States today. Assessment and Collection of Regulatory Fees for Fiscal Year 2016, Notice of Proposed Rulemaking, MD Docket No. 16-166, 31 FCC Rcd 5757, Appendix E para. 23 (2016) (citing Office of Management and Budget (OMB) Memorandum M-10-06, Open Government Directive, Dec. 8, 2009).
 Accordingly, an operator serving fewer than 524,037 subscribers shall be deemed a small operator if its annual revenues, when combined with the total annual revenues of all its affiliates, do not exceed $250 million in the aggregate. 47 CFR § 76.901(f).
  Based on available data, we find that all but nine incumbent cable operators are small entities under this size standard. Assessment & Collection of Regulatory Fees for Fiscal Year 2016, Notice of Proposed Rulemaking, 31 FCC Rcd 5757, Appendix E para. 23 (2016).
  We note that the Commission neither requests nor collects information on whether cable system operators are affiliated with entities whose gross annual revenues exceed $250 million. The Commission does receive such information on a case-by-case basis if a cable operator appeals a local franchise authority's finding that the operator does not qualify as a small cable operator pursuant to section 76.901(f) of the Commission’s rules.  See 47 CFR § 76.901(f).
  Although it seems certain that some of these cable system operators are affiliated with entities whose gross annual revenues exceed $250,000,000, we are unable at this time to estimate with greater precision the number of cable system operators that would qualify as small cable operators under the definition in the Communications Act.  
27. All Other Telecommunications.  “All Other Telecommunications” is defined as follows:  “This U.S. industry is comprised of establishments that are primarily engaged in providing specialized telecommunications services, such as satellite tracking, communications telemetry, and radar station operation.  This industry also includes establishments primarily engaged in providing satellite terminal stations and associated facilities connected with one or more terrestrial systems and capable of transmitting telecommunications to, and receiving telecommunications from, satellite systems.  Establishments providing Internet services or voice over Internet protocol (VoIP) services via client supplied telecommunications connections are also included in this industry.”2012 U.S. Economic Census, https://www.census.gov/econ/isp/sampler.php?naicscode=517919&naicslevel=6. 
  The SBA has developed a small business size standard for “All Other Telecommunications,” which consists of all such firms with gross annual receipts of $32.5 million or less. 13 CFR § 121.201; 2012 U.S. Economic Census, NAICS Code 517919.
  For this category, Census Bureau data for 2012 show that there were 1,442 firms that operated for the entire year.  Of those firms, a total of 1,400 had annual receipts less than $25 million. U.S. Census Bureau, 2012 Economic Census of the United States, Table EC0751SSSZ1, Information:  Subject Series - Establishment and Firm Size: Receipts Size of Firms for the United States: 2012 NAICS Code 517919, http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_51SSSZ1&prodType=table.
  Consequently, we conclude that the majority of All Other Telecommunications firms can be considered small.
E. Description of Projected Reporting, Recordkeeping, and Other Compliance Requirements
28. In this Order, we revise our rules to better address ongoing problems in the completion of long-distance telephone calls to rural areas; namely, providing insight into the identity of intermediate providers in the voice call market, and accountability to both covered providers and the Commission.  In so doing, we require intermediate providers to furnish information to a publicly available online registry maintained by the Commission that allows for better transparency and accountability these entities in the voice call routing system.
F. Steps Taken to Minimize the Significant Economic Impact on Small Entities and Significant Alternatives Considered
29. The RFA requires an agency to describe any significant, specifically small business, alternatives that it has considered in reaching its proposed approach, which may include the following four alternatives (among others): (1) the establishment of differing compliance or reporting requirements or timetables that take into account the resources available to small entities; (2) the clarification, consolidation, or simplification of compliance and reporting requirements under the rules for such small entities; (3) the use of performance rather than design standards; and (4) an exemption from coverage of the rule, or any part thereof, for such small entities. 5 U.S.C. § 603(c).

30. The Order adopts reforms that apply across the voice calling system, including small entities.  As described in the Order, in adopting these reforms, we sought comment on the impact of our rule changes on all size providers, and considered significant alternatives to provide insight into the identity of intermediate providers in the voice call market, and establish accountability to covered providers and the Commission.
31. First, we apply our registration requirement to all intermediate providers, as we define them in this Third Report and Order, See 47 CFR § 64.2101.
 but we clarify that this requirement does not apply to entities incidentally carrying, routing, or transmitting voice traffic.  This clarification will reduce the burden on all entities, including small providers, which do not have specific business arrangements to carry traffic, but which transmission of voice traffic is merely incident to operation.  Because this measure involves furnishing presently existing information on intermediate provider company leadership, rural call completion technical point of contact, contact information thereof, and places of operation, See 47 CFR § 64.2115 (as promulgated by this proceeding).  
 we find little if no additional burden to providers in consolidating such information and furnishing this information to the Commission via an online registry.  As such we find that this is a low-cost measure to facilitate industry collaboration to address call completion issues, and increase accountability and transparency of intermediate providers in the voice call market.
32. In addition, we revised our proposal to require intermediate provider registry changes within one week of the change, to a time period of ten business days, based upon record concerns that the proposed time period was burdensome.  
33. Finally, we adopted an exception to our prohibition on use of unregistered intermediate providers by covered providers transmitting covered voice communications in the case of force majeure, to minimize burdens covered providers may experience in complying with our rules during force majeure, and accordingly provide for an initial exemption period of up to 180 days, which may be extended upon covered provider request.
G. Report to Congress
34. The Commission will send a copy of the Report and Order, including this FRFA, in a report to be sent to Congress pursuant to the Congressional Review Act. See 5 U.S.C. § 801(a)(1)(A).
  In addition, the Commission will send a copy of the Report and Order, including this FRFA, to the Chief Counsel for Advocacy of the SBA.  A copy of the Order and FRFA (or summaries thereof) will also be published in the Federal Register. See 5 U.S.C. § 604(b).
  

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