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FCC Section 214 Licensing for Telecommunications Providers Offering International CallingWritten by: Thomas K Crowe Reputation Level 8
Posted over 2 years ago. 0 helpful votes, 0 comments
In order to lawfully offer commercial calling between the US and foreign points, telecommunications providers generally must first apply for and obtain a certificate of authority under Section 214 of the Communications Act of 1934, as amended (ACT), from the Federal Communications Commission (FCC).
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Section 214 Authorization: A License to Provide International Telecommunications ServiceVirtually all telecommunications providers (including facilities-based carriers, resellers, prepaid calling card providers and many wireless service providers) offering calling between the U.S. and foreign points must obtain a certificate of authority under Section 214 of the Act. It is unlawful to offer or advertise services allowing international calling without first obtaining a Section 214 license. It is generally referred to as a â214 licenseâ, â214 authorityâ, â214 certificateâ, â214 authorizationâ, or simply â214â. While the application is pending, a provider generally may not commence offering services. In short, a 214 authorization is a license to offer international telecommunications service. This fact was recently underscored by a Notice of Apparent Liability issued by the FCCâs Enforcement Bureau proposing to assess a $100,000 penalty or forfeiture against a prepaid calling card provider which had operated without such authorization 2
The Application ProcessFCC rules require that all 214 applications be filed electronically through the FCCâs website. The current FCC filing fee for Section 214 applications is $1,015. The application should appear on Public Notice as accepted for streamlined processing by the FCCâs International Bureau within two weeks of payment. Once accepted for streamlined processing, the application is generally granted automatically after a 14 day waiting period. The provider first needs to obtain a Federal Registration Number (FRN) through the FCC website (see section two of my AVVO legal guide "FCC 499-A Licensing for Telecommunications Providers Offering Domestic Interstate Service"). In addition to general information about the company or organization, the provider needs to designate the type of services it offers, the international destinations it serves, disclose any persons or entities with more than 10% control of the company, and state that the company qualifies for streamlined processing, if applicable. 3
Non Streamlined ProcessingThere are four circumstances which can arise where the FCC will not process a 214 application under streamlined processing. The first occurs where the applicant is affiliated with a foreign carrier in the destination market it seeks to serve, unless the applicant can make a special showing. The second occurs where the applicant has an affiliation with a dominant U.S. carrier whose international switched or private line services the applicant seeks authority to resell. The third circumstance that can arise disqualifying an application from streamlined processing is when the applicant seeks authority to provide switched basic services over private lines to a country for which the FCC has not previously authorized the provision of switched services over private lines. Finally, a âcatch allâ category exists where at any time during the fourteen day period, the FCC can inform the applicant that its application is no longer eligible for streamlined processing. 4
Section 214 Authorization for Foreign-Owned CompaniesWhile FCC regulations allow foreign-owned companies to apply for and hold FCC 214 licenses, applications from these companies are far more likely to be pulled for closer scrutiny by the Executive Branch. Executive Branch inquiries typically request additional information (sometimes significant additional information) about the applicant, its ownership, where its business records will be located, and the specific types of telecommunications services it plans to provide. These investigations can delay final action on an application for weeks or possibly even months. 5
Completion of the ApplicationOnce application processing is complete and the FCC is prepared to grant an application, it issues a second Public Notice which lists approved applications. This second Public Notice serves as the official certificate for the applicant that it is authorized under Section 214 of the Act to provide international service between the U.S. and foreign points. 6
Ongoing Federal ComplianceOperating as a Section 214 licensee triggers a range of ongoing federal compliance obligations. One requirement is to keep the FCC updated as to any substantial changes in ownership, transfers of control, or other changes in the regulatory status of the license. Any such changes need to be promptly reported to the FCC. In addition, a 214 licensee must disclose its rates, terms and conditions to the public (usually via a Price List posted on its website); pay certain regulatory fees and surcharges (including possibly the Universal Service Fund (âUSFâ) assessment); as well as even comply with rules for when it discontinues service or ceases operations. Thus, Section 214 licensing is anything but a one-step, one-time obligation. 7
DisclaimerThe foregoing is intended to provide a general overview only and should not be viewed as a substitute for conferring with qualified legal counsel. Each new business will have unique requirements that should be analyzed by counsel. Information current as of August 6, 2009. Additional ResourcesFor more information on filing a Section 214 application, visit the Federal Communications Commission website:
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