TELECOMMUNICATIONS SERVICES

Telecommunications services are defined as “transmissions between points specified by the user of information without change in the form or content of the information as sent and received.” 

 

The analysis of whether a carrier is a provider of “telecommunications services” is a complex exercise that involves interpreting federal case law. International communications providers include wireless service providers, prepaid calling card providers or resellers, virtual network operators, switched long-distance providers, facilities-based providers, and others.

 

CLASSIFICATION OF 214 HOLDERS 

There are two broad classifications of 214 holders. One, the carrier that resells the telecommunications services of another carrier (the reseller), and two, the carrier that provides telecommunications services using its own facilities (the facilities-base provider). 

 

Both of these entities are required to have their own 214 authorizations. It is important to emphasize that a reseller cannot “ride” or use another carrier’s 214. The reseller must apply and obtain its own 214 license.

 

Filing and obtaining a 214 authorization is the first regulatory hurdle that a new provider must overcome before entering the international telecommunications market. However, this is not a one-time ordeal. Once a 214 authorization is obtained, existing 214 holders have certain ongoing regulatory duties, including:

 

1. Keeping Information Updated. The 214 holder remains responsible for the continuing accuracy of the certifications made in its original application and must notify the FCC of any alteration such as changes in business address, ownership structure and affiliations with dominant carriers. The purpose of this requirement is to maintain an updated file that the public can reference to verify the status of 214 holders.

 

2. Filing Annual Disclosures. The 214 holder must file annual reports of overseas telecommunications traffic as well as revenue. The type of information in the report depends on whether the 214 holder is classified as a reseller or a facilities-based carrier.

 

THE COST OF A 214 LICENSE

The FCC charges a filing fee for the 214 application. Most law firms charge their standard hourly rate to procure 214 authorizations. Other law firms charge a flat fee for preparing the 214 application. Please refer to our FEES tab to see the current FCC fee for a 214 application. 

 

OPERATING WITHOUT A LICENSE

The FCC has consistently imposed fines on carriers for failing to obtain a 214 authorization. The Telecommunications Act prohibits any carrier from constructing, extending, or operating any line, and from engaging in any transmission through any such line unless a 214 authorization is first obtained.

 

OTHER REGULATORY REQUIREMENTS

Aside from the International 214 license, carriers may be subject to several other regulatory requirements. One of the most important one is contribution to the Universal Service Fund (USF). 

 

Carriers subject to USF are required to file quarterly and annual reports. Carriers may also be required to comply with regulations on E911, CALEA (wire tapping), Telecommunications Relay Services (TRS), and others. In addition, individual states may impose their own state telecommunications regulations.