How to Become an IXC in Texas

This guide explains how to register an Interexchange Carrier (IXC) the Public Utility Commission of Texas.

1. How to Become an IXC in Texas

   A long distance carrier is known in regulatory parlance as an interexchange carrier (IXC). Local exchange carriers pay IXCs a toll to route calls between telephone exchanges (i.e., long distance calls). The Texas Public Utility Commission does not regulate IXCs, but it does required any IXC that intends to operate in Texas to file a registration (PUC SUBST. R. 26.107). There are currently 269 IXCs registered in Texas and anyone that wants to join their ranks should take the following steps.

2. Assemble Company Materials for Registration

   A company needs to gather very specific information to register as an IXC. This includes the company's file number with the Texas Secretary of State, its Tax ID assigned by the Texas Comptroller, and a complete list of its owners and officers. If the company has obtained any of its regulatory codes, such as an Operating Company Number or Carrier Identification Code, those should be included as well. Also, all affiliates that operate in Texas must be disclosed. If an owner or officer is a felon, that must divulged to the PUC as well. Once all of this information is assembled, you can finalize the registration.

3. Complete and File the Registration Form

   New registrants are required to use the PUC's official IXC Registration Form. With the information you've compiled, complete each part of the form. If any affiliates are disclosed, an organizational chart should be included as well. The contact information and representatives that you identify here will be displayed in the PUC's market directory. An original and three copies of the form should be filed with Central Records in PUC Docket No. 25000.

4. Timeline

   An IXC needs to register with the PUC within 30 days of starting long distance service in Texas. Once the form is filed, the PUC will assign your company a registration number. The registration is valid immediately and will remain in effect until April 30 of the next odd year, at which point you must re-register. Your first annual report will be due on the following April 30.

5. Consider Hiring Counsel

   Although an attorney isn't required to register as an IXC, it's a good idea to consider hiring experienced counsel to complete your registration. For example, the PUC's rules and the Public Utility Regulatory Act have very strict definitions of what constitutes an "affiliate. An attorney can determine exactly which people and entities must be disclosed. An experienced lawyer can also assist a new IXC will its other legal responsibilities, such as applying for a 214 license, obtaining a 499 Filer ID, creating CPNI procedures, drafting and filing tariffs, and establishing a prospective regulatory compliance plan.