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Home - FCC expected to dump cost-recovery obligation
Archived ArticlesCarriers

FCC expected to dump cost-recovery obligation

by Reily Gregson November 15, 1999
written by Reily Gregson November 15, 1999 Share
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WASHINGTON-The Federal Communications Commission is expected to revise wireless enhanced 911 rules that would eliminate the cost-recovery obligation that now must be met before E911 services have to be deployed.

The move faced heavy lobbying from wireless carriers, two associations representing public safety answering points and members of Congress, but to no avail.

Under current FCC regulations, Phase I and Phase II E911 rules only have to be implemented when a carrier gets a request from the PSAP and a cost-recovery mechanism is in place. It has been generally understood states need to put in place those cost-recovery mechanisms.

The FCC’s new rules would allow a “bill-and-keep” mechanism, where carriers would pay to implement E911 service. Such a rule might not make it necessary for state legislatures to enact wireless E911 cost-recovery laws.

The Cellular Telecommunications Industry Association has been the most vocal in urging the FCC to stay the course and not revise the rules. The wireless lobbying group sent two letters to the FCC and met with the National Emergency Number Association and the National Association of State Nine One One Administrators.

Four members of Congress, including Rep. Billy Tauzin (R-La.), chairman of the House telecommunications subcommittee, also have sent a letter to the FCC, saying that by changing the rules, the FCC “will lose its ability to oversee the adoption and implementation of state cost-recovery mechanisms.”

The members of Congress also are concerned changing the rules would frustrate competition between wireless and wireline carriers. “Wireline carriers have established tariffed charges for the provision of emergency services, and they recover those charges directly from [PSAPs]. Wireless carriers would find themselves at a comprehensive disadvantage if they had to pass the costs of emergency services on to their customers or absorb them to avoid imposing such surcharges … such charges would vary from carrier to carrier, creating additional marketplace disparities and undermining competitive neutrality.”

By contrast, the Association of Public-Safety Communications Officials International Inc. believes today’s cost-recovery rule has delayed the rollout of E911 Phase I service. To date, only 3 percent of the PSAPs have implemented Phase I service, even though the nationwide compliance deadline was April 1, 1998.

Phase I implementation required carriers to provide PSAPs with call-back and cell-site information when 911 is dialed.

Some in industry and government are concerned Phase II rules also will not be rolled out on schedule. Phase II requires wireless carriers to provide PSAPs with automatic location information accurate to 410 feet. Implementation deadlines differ depending on whether a carrier deploys a network-based technology or one using handsets with global positioning system technology.

APCO maintains carriers have not cooperated with PSAPs. If the process is not modified, APCO believes Phase II will not be implemented on schedule because of carrier recalcitrance.

“Leaving the process as it is will merely perpetuate the ability of carriers to `just say no.’ … We believe that giving states greater options in determining whether and how to create carrier cost recovery will increase, not decrease, the incentives for carriers to cooperate with PSAPs,” said APCO President Joe Hanna.

CTIA, NENA and NASNA have suggested the FCC delay changing the rules until June to give the carriers time to develop data on E911 rollout, said Brian Fontes, CTIA senior vice president for policy and administration.

However, it appears the FCC has not been swayed. “It wouldn’t be to anyone’s advantage to delay,” said one FCC official, who declined to be identified.

Also on the 911 front, President Clinton’s point man on year-2000 issues is strongly urging families to post in a prominent place the non-911 numbers for emergency personnel because less than half of the 911 systems in the country are Y2K compliant.

Washington Bureau Chief Jeffrey Silva contributed to this report.

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