§ 54.313   Annual reporting requirements for high-cost recipients.

   (a) Any recipient of high-cost support shall provide the following, with the
   information and data required by paragraphs (a)(1) through (7) of this
   section separately broken out for both voice service and broadband service:

   (1) A progress report on its five-year service quality improvement plan
   pursuant  to § 54.202(a), including maps detailing its progress towards
   meeting its plan targets, an explanation of how much universal service
   support  was  received and how it was used to improve service quality,
   coverage, or capacity, and an explanation regarding any network improvement
   targets  that  have not been fulfilled in the prior calendar year. The
   information shall be submitted at the wire center level or census block as
   appropriate;

   (2) Detailed information on any outage in the prior calendar year, as that
   term is defined in 47 CFR 4.5, of at least 30 minutes in duration for each
   service area in which an eligible telecommunications carrier is designated
   for any facilities it owns, operates, leases, or otherwise utilizes that
   potentially affect

   (i) At least ten percent of the end users served in a designated service
   area; or

   (ii) A 911 special facility, as defined in 47 CFR 4.5(e).

   (iii) Specifically, the eligible telecommunications carrier's annual report
   must include information detailing:

   (A) The date and time of onset of the outage;

   (B) A brief description of the outage and its resolution;

   (C) The particular services affected;

   (D) The geographic areas affected by the outage;

   (E) Steps taken to prevent a similar situation in the future; and

   (F) The number of customers affected.

   (3) The number of requests for service from potential customers within the
   recipient's service areas that were unfulfilled during the prior calendar
   year. The carrier shall also detail how it attempted to provide service to
   those potential customers;

   (4) The number of complaints per 1,000 connections (fixed or mobile) in the
   prior calendar year;

   (5) Certification that it is complying with applicable service quality
   standards and consumer protection rules;

   (6)  Certification  that  the carrier is able to function in emergency
   situations as set forth in § 54.202(a)(2);

   (7) The company's price offerings in a format as specified by the Wireline
   Competition Bureau;

   (8) The recipient's holding company, operating companies, affiliates, and
   any branding (a “dba,” or “doing-business-as company” or brand designation),
   as well as universal service identifiers for each such entity by Study Area
   Codes, as that term is used by the Administrator. For purposes of this
   paragraph, “affiliates” has the meaning set forth in section 3(2) of the
   Communications Act of 1934, as amended;

   (9) Beginning July 1, 2013. To the extent the recipient serves Tribal lands,
   documents or information demonstrating that the ETC had discussions with
   Tribal governments that, at a minimum, included:

   (i)  A needs assessment and deployment planning with a focus on Tribal
   community anchor institutions;

   (ii) Feasibility and sustainability planning;

   (iii) Marketing services in a culturally sensitive manner;

   (iv)  Rights of way processes, land use permitting, facilities siting,
   environmental and cultural preservation review processes; and

   (v) Compliance with Tribal business and licensing requirements. Tribal
   business and licensing requirements include business practice licenses that
   Tribal and non-Tribal business entities, whether located on or off Tribal
   lands, must obtain upon application to the relevant Tribal government office
   or  division to conduct any business or trade, or deliver any goods or
   services to the Tribes, Tribal members, or Tribal lands. These include
   certificates of public convenience and necessity, Tribal business licenses,
   master licenses, and other related forms of Tribal government licensure.

   (10) Beginning July 1, 2013. A letter certifying that the pricing of the
   company's voice services is no more than two standard deviations above the
   applicable national average urban rate for voice service, as specified in
   the most recent public notice issued by the Wireline Competition Bureau and
   Wireless Telecommunications Bureau; and

   (11)  Beginning July 1, 2013. The results of network performance tests
   pursuant to the methodology and in the format determined by the Wireline
   Competition  Bureau, Wireless Telecommunications Bureau, and Office of
   Engineering and Technology.

   (12)  A  certification  that  the  pricing of a service that meets the
   Commission's broadband public interest obligations is no more than the
   applicable benchmark to be announced annually in a public notice issued by
   the Wireline Competition Bureau, or is no more than the non-promotional
   price charged for a comparable fixed wireline service in urban areas in the
   states or U.S. Territories where the eligible telecommunications carrier
   receives support.

   (b) In addition to the information and certifications in paragraph (a) of
   this section:

   (1) Any recipient of incremental Connect America Phase I support pursuant to
   § 54.312(b) and (c) shall provide:

   (i) In its next annual report due after two years after filing a notice of
   acceptance of funding pursuant to § 54.312(b) and (c), a certification that
   the company has deployed to no fewer than two-thirds of the required number
   of locations; and

   (ii) In its next annual report due after three years after filing a notice
   of acceptance of funding pursuant to § 54.312(b) and (c), a certification
   that the company has deployed to all required locations and that it is
   offering  broadband  service  of at least 4 Mbps downstream and 1 Mbps
   upstream, with latency sufficiently low to enable the use of real-time
   communications, including Voice over Internet Protocol, and with usage
   allowances, if any, associated with a specified price for a service offering
   that are reasonably comparable to comparable offerings in urban areas.

   (2) In addition to the information and certifications required in paragraph
   (b)(1) of this section, any recipient of incremental Connect America Phase I
   support pursuant to § 54.312(c) shall provide:

   (i) In its annual reports due after one, two, and three years after filing a
   notice of acceptance of funding pursuant to § 54.312(c), a certification
   that, to the best of the recipient's knowledge, the locations in question
   are not receiving support under the Broadband Initiatives Program or the
   Broadband Technology Opportunities Program for projects that will provide
   broadband with speeds of at least 4 Mbps/1 Mbps; and

   (ii) In its annual reports due after one, two, and three years after filing
   a notice of acceptance of funding pursuant to § 54.312(c), a statement of the
   total amount of capital funding expended in the previous year in meeting
   Connect America Phase I deployment obligations, accompanied by a list of
   census blocks indicating where funding was spent.

   (c) In addition to the information and certifications in paragraph (a) of
   this section, price cap carriers that receive frozen high-cost support
   pursuant to § 54.312(a) shall provide:

   (1) By July 1, 2013. A certification that frozen high-cost support the
   company received in 2012 was used consistent with the goal of achieving
   universal availability of voice and broadband;

   (2)  By  July  1, 2014. A certification that at least one-third of the
   frozen-high cost support the company received in 2013 was used to build and
   operate broadband-capable networks used to offer the provider's own retail
   broadband  service  in areas substantially unserved by an unsubsidized
   competitor;

   (3)  By  July 1, 2015. A certification that at least two-thirds of the
   frozen-high cost support the company received in 2014 was used to build and
   operate broadband-capable networks used to offer the provider's own retail
   broadband  service  in areas substantially unserved by an unsubsidized
   competitor; and

   (4)  By July 1, 2016 and in subsequent years. A certification that all
   frozen-high cost support the company received in the previous year was used
   to build and operate broadband-capable networks used to offer the provider's
   own  retail  broadband  service  in areas substantially unserved by an
   unsubsidized competitor.

   (d) In addition to the information and certifications in paragraph (a) of
   this section, beginning July 1, 2013, price cap carriers receiving high-cost
   support to offset reductions in access charges shall provide a certification
   that the support received pursuant to § 54.304 in the prior calendar year was
   used  to  build  and  operate broadband-capable networks used to offer
   provider's  own  retail  service in areas substantially unserved by an
   unsubsidized competitor.

   (e) In addition to the information and certifications in paragraph (a) of
   this section, any price cap carrier that elects to receive Connect America
   Phase II model-based support shall provide:

   (1)  On  July 1, 2016 an initial service quality improvement plan that
   includes a list of the geocoded locations already meeting the § 54.309 public
   interest obligations at the end of calendar year 2015, and the total amount
   of  Phase  II  support, if any, the price cap carrier used for capital
   expenditures in 2015.

   (2)  On  July 1, 2017 and every year thereafter ending July 1, 2021, a
   progress report on the company's service quality improvement plan, including
   the following information:

   (i) A certification that it is meeting the interim deployment milestones as
   set forth;

   (ii) The number, names, and addresses of community anchor institutions to
   which the eligible telecommunications carrier newly began providing access
   to broadband service in the preceding calendar year;

   (iii)  A  list  of  the  geocoded  locations  to  which  the  eligible
   telecommunications carrier newly deployed facilities capable of delivering
   broadband meeting the § 54.309 public interest obligations with Connect
   America support in the prior year. The final progress report filed on July
   1, 2021 must include the total number and geocodes of all the supported
   locations that a price cap carrier has built out to with service meeting the
   § 54.309 public interest obligations;

   (iv) The total amount of Phase II support, if any, the price cap carrier
   used for capital expenditures in the previous calendar year; and

   (v) A certification that it bid on category one telecommunications and
   Internet access services in response to all FCC Form 470 postings seeking
   broadband service that meets the connectivity targets for the schools and
   libraries  universal  service support program for eligible schools and
   libraries (as described in § 54.501) located within any area in a census
   block where the carrier is receiving Phase II model-based support, and that
   such bids were at rates reasonably comparable to rates charged to eligible
   schools and libraries in urban areas for comparable offerings.

   (3) On July 1, 2018, a certification that the recipient offered broadband
   meeting the requisite public interest obligations specified in § 54.309 to
   40% of its supported locations in the state on December 31, 2017.

   (4) On July 1, 2019, a certification that the recipient offered broadband
   meeting the requisite public interest obligations specified in § 54.309 to
   60% of its supported locations in the state on December 31, 2018.

   (5) On July 1, 2020, a certification that the recipient offered broadband
   meeting the requisite public interest obligations specified in § 54.309 to
   80% of its supported locations in the state on December 31, 2019.

   (6) On July 1, 2021, a certification that the recipient offered broadband
   meeting the requisite public interest obligations specified in § 54.309 to
   100% of its supported locations in the state on December 31, 2020.

   (f) In addition to the information and certifications in paragraph (a) of
   this section, any rate-of-return carrier shall provide:

   (1) Beginning July 1, 2015. A progress report on its five-year service
   quality plan pursuant to § 54.202(a) that includes the following information:

   (i) A letter certifying that it is taking reasonable steps to provide upon
   reasonable request broadband service at actual speeds of at least 4 Mbps
   downstream/1  Mbps  upstream,  with  latency  suitable  for  real-time
   applications, including Voice over Internet Protocol, and usage capacity
   that is reasonably comparable to comparable offerings in urban areas as
   determined in an annual survey, and that requests for such service are met
   within a reasonable amount of time;

   (ii) The number, names, and addresses of community anchor institutions to
   which the ETC newly began providing access to broadband service in the
   preceding calendar year; and

   (iii)  For  rate-of-return  carrier recipients of high-cost support, a
   certification that it bid on category one telecommunications and Internet
   access services in response to all reasonable requests in posted FCC Form
   470s seeking broadband service that meets the connectivity targets for the
   schools and libraries universal service support program for eligible schools
   and libraries (as described in § 54.501) within its service area, and that
   such bids were at rates reasonably comparable to rates charged to eligible
   schools and libraries in urban areas for comparable offerings.

   (2) Privately held rate-of-return carriers only. A full and complete annual
   report of the company's financial condition and operations as of the end of
   the preceding fiscal year.

   (i) Recipients of loans from the Rural Utility Service (RUS) shall provide
   copies of their RUS Operating Report for Telecommunications Borrowers as
   filed with the RUS. Such carriers must make their underlying audit and
   related workpapers and financial information available upon request by the
   Commission, USAC, or the relevant state commission, relevant authority in a
   U.S. Territory, or Tribal government, as appropriate.

   (ii) All privately held rate-of-return carriers that are not recipients of
   loans  from  the RUS and whose financial statements are audited in the
   ordinary course of business must provide either: A copy of their audited
   financial statement; or a financial report in a format comparable to RUS
   Operating Report for Telecommunications Borrowers, accompanied by a copy of
   a management letter issued by the independent certified public accountant
   that performed the company's financial audit. A carrier choosing the latter
   option must make its audit and related workpapers and financial information
   available  upon request by the Commission, USAC, or the relevant state
   commission, relevant authority in a U.S. Territory, or Tribal government, as
   appropriate.

   (iii) All other privately held rate-of-return carriers must provide either:
   A copy of their financial statement which has been subject to review by an
   independent certified public accountant; or a financial report in a format
   comparable to RUS Operating Report for Telecommunications Borrowers, with
   the underlying information subjected to a review by an independent certified
   public accountant and accompanied by an officer certification that: The
   carrier was not audited in the ordinary course of business for the preceding
   fiscal year; and that the reported data are accurate. If the carrier elects
   the  second option, it must make the review and related workpapers and
   financial information available upon request by the Commission, USAC, or the
   relevant state commission, relevant authority in a U.S. Territory, or Tribal
   government, as appropriate.

   (g)  Areas  with  No  Terrestrial Backhaul. Carriers without access to
   terrestrial backhaul that are compelled to rely exclusively on satellite
   backhaul in their study area must certify annually that no terrestrial
   backhaul options exist. Any such funding recipients must certify they offer
   broadband service at actual speeds of at least 1 Mbps downstream and 256
   kbps upstream within the supported area served by satellite middle-mile
   facilities. To the extent that new terrestrial backhaul facilities are
   constructed,  or  existing facilities improve sufficiently to meet the
   relevant  speed,  latency and capacity requirements then in effect for
   broadband service supported by the CAF, within twelve months of the new
   backhaul facilities becoming commercially available, funding recipients must
   provide the certifications required in paragraphs (e) or (f) of this section
   in full. Carriers subject to this paragraph must comply with all other
   requirements set forth in the remaining paragraphs of this section.

   (h) Additional voice rate data. (1) All incumbent local exchange carrier
   recipients  of  high-cost  support  must report all of their rates for
   residential local service for all portions of their service area, as well as
   state fees as defined pursuant to § 54.318(e), to the extent the sum of those
   rates and fees are below the rate floor as defined in § 54.318, and the
   number of lines for each rate specified. Carriers shall report lines and
   rates in effect as of June 1.

   (2) In addition to the annual filing, local exchange carriers may file
   updates of their rates for residential local service, as well as state fees
   as defined pursuant to § 54.318(e), on January 2 of each year. If a local
   exchange carrier reduces its rates and the sum of the reduced rates and
   state  fees  are below the rate floor as defined in § 54.318, the local
   exchange carrier shall file such an update. For the update, carriers shall
   report lines and rates in effect as of December 1.

   (i) All reports pursuant to this section shall be filed with the Office of
   the Secretary of the Commission clearly referencing WC Docket No. 14-58,
   with the Administrator, and with the relevant state commissions or relevant
   authority in a U.S. Territory, or Tribal governments, as appropriate.

   (j) Filing deadlines. (1) In order for a recipient of high-cost support to
   continue to receive support for the following calendar year, or retain its
   eligible telecommunications carrier designation, it must submit the annual
   reporting information required by this section annually by July 1 of each
   year. Eligible telecommunications carriers that file their reports after the
   July  1  deadline shall receive a reduction in support pursuant to the
   following schedule:

   (i) An eligible telecommunications carrier that files after the July 1
   deadline,  but  by  July 8, will have its support reduced in an amount
   equivalent to seven days in support;

   (ii) An eligible telecommunications carrier that files on or after July 9
   will have its support reduced on a pro-rata daily basis equivalent to the
   period of non-compliance, plus the minimum seven-day reduction.

   (2) Grace period. An eligible telecommunications carrier that submits the
   annual reporting information required by this section after July 1 but
   before  July 5 will not receive a reduction in support if the eligible
   telecommunications carrier and its holding company, operating companies, and
   affiliates as reported pursuant to paragraph (a)(8) of this section have not
   missed the July 1 deadline in any prior year.

   (k) This section does not apply to recipients that solely receive support
   from the Phase I Mobility Fund.

   [ 76 FR 73873 , Nov. 29, 2011, as amended at  77 FR 14302 , Mar. 9, 2012;  77 FR 30914 , May 24, 2012;  78 FR 22201 , Apr. 15, 2013;  78 FR 29656 , May 21, 2013;
    78 FR 3843 , Jan. 17, 2013;  78 FR 38233 , June 26, 2013;  79 FR 11336 , Feb. 28,
   2014;  79 FR 39189 , July 9, 2014;  80 FR 4477 , Jan. 27, 2015;]

   Effective Date Notes: 1. At  77 FR 14302 , Mar. 9, 2012, § 54.313 was amended
   by revising paragraphs (a)(9) introductory text and (f)(2). These paragraphs
   contain information collection and recordkeeping requirements and will not
   become effective until approval has been given by the Office of Management
   and Budget.

   2. At  79 FR 11336 , Feb. 28, 2014, § 54.313 was amended by revising paragraphs
   (e)(1),  (e)(2) and (e)(3) introductory text. These paragraphs contain
   information collection and recordkeeping requirements and will not become
   effective until approval has been given by the Office of Management and
   Budget.

   3. At  80 FR 4476 , Jan. 27, 2015, § 54.313 was amended by adding paragraph
   (a)(12) and revising paragraph (e). These paragraphs contain information
   collection and record keeping requirements and will not become effective
   until approval has been given by the Office of Management and Budget.

   4. At  80 FR 5987 , Feb. 4, 2015, § 54.313 was amended by revising paragraphs
   (e)(2)(iii)  and (iv), adding paragraph (e)(2)(v), revising paragraphs
   (f)(1)(i) and (ii), and revising paragraph (f)(1)(iii). These paragraphs
   contain information collection and recordkeeping requirements and will not
   become effective until approval have been given by the Office of Management
   and Budget.

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