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Step 2: Become an Eligible Telecommunications Carrier

When a wireline or wireless telephone company files a petition directly with the FCC, it must provide copies of its petition to the affected state utility regulator at the same time. The FCC will release a public notice establishing a pleading cycle for comments on the petition. Based on the evidence in the record, the FCC will first make a jurisdictional determination. If the FCC determines that the state regulator lacks jurisdiction, it will decide the merits of the request within 6 months of the jurisdictional decision. If the company fails to meet its burden of proof that it is not subject to the state regulator's jurisdiction, the FCC will dismiss the request and direct the company to seek ETC designation from its state utility regulator.

On February 25, 2005, the FCC adopted new requirements for ETCs (FCC 05-46, released March 17, 2005; "ETC Order") that are designated by the FCC including new reporting requirements. An ETC that is designated by the FCC must: (1) provide a five-year plan showing how high-cost universal service support will be used to improve its coverage, service quality, or capacity in each wire center it seeks designation; (2) demonstrate its ability to remain functional in emergency situations; (3) demonstrate that it will satisfy consumer protection and service quality standards; (4) offer local usage plans comparable to those offered by the incumbent carrier in the areas for which it seeks designation; and (5) acknowledge that it may be required to provide equal access if all other ETCs in the designated service area relinquish their designations.

In the ETC Order, the FCC also encouraged state commissions to adopt similar requirements. Check with your state commission to see if there is a proceeding under way or whether the commission has adopted similar requirements. See Sections 54.202 and 54.209 of the FCC's rules for more details if you were designated as an ETC by the FCC.