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TEXAS STATEWIDE TELEPHONE COOPERATIVE, INC.

Accounting and Customer Service Conference - 2014

Regulation and Accounting for VoIP

Presented by:

Matt Snowden, C.P.A.Bolinger, Segars, Gilbert & Moss, L.L.P.

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TOPICS

Regulation

Accounting

Taxes

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Regulation

Is it regulated?

Depends

Three different scenarios

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Regulation

Scenario One

ILEC/CLEC provides basic local exchange service using VoIP technology

Regulated? Yes!

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Regulation

Scenario Two

ILEC/CLEC provides a combination of basic local exchange service and DSL service, over which a VoIP service is provided by an entity other than the ILEC/CLEC

Regulated? Yes and No

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Regulation

Scenario Three

ILEC/CLEC provides a data-only DSL service over which a VoIP service is provided by an entity other than the ILEC/CLEC

Regulated? Yes and No

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Additional Regulation

FCC has acted to ensure VoIP providers comply with important public safety requirements and public policy goals.

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Additional Regulation – E911

All interconnected VoIP providers must:

Provide 911 service to all of their customers Obtain customer’s physical location at which the service will

first be used Transmit all 911 calls (including callback number and physical

location) to appropriate emergency services call center or local emergency authority

Inform and obtain affirmative acknowledgement from new and existing customers of the limitations of their 911 service

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Additional Regulation - Other

Local Number Portability (LNP)

Customer Proprietary Network Information (CPNI)

Telecommunication Relay Service (TRS) requirements

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Accounting

VoIP Network

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Accounting

VoIP Network

Class 4 or 5

TDM Switch

TDM Softswitch

STP

Media Gateway Media

Gateway Controller

Border Session

Controller

Signaling Gateway

2232 Circuit

Equipment

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Accounting

What is a “Switch”?

Centers around interconnection Controls the call Interfaces other network elements Must support the origination and termination of a call Serves functions such as routing, billing, traffic measurement

and custom calling

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Accounting – TDM Softswitch

Softswitch Elements

Functionality Classification Account

Softswitch controller + Signaling Gateway

Call ControlSS7 Interface

Standalone Softswitch Controller – Not a switch

2232.1 Circuit Equipment

Softswitch controller + Signaling Gateway +Line Gateway +Trunk Gateway +Packet Router

Call ControlSS7 InterfaceLine TerminationsTrunk TerminationsRouting for L-L and L-T and possible T - T

Softswitch End Office with associated circuit equipment or Softswitch Tandem Switch

Softswitch End Office (2212.1 Digital Electric Switching) and other Circuit Equipment (2232.1 Circuit Equipment)

Line Gateway +Trunk Gateway +Packet Router

Line TerminationsTrunk TerminationsRouting for L-L and L-T and possible T-T

Softswitch Remote with associated circuit equipment (Requires Softswitch controller and Signaling Gateway for call routing and other functionalities)

Softswitch Remote (2212.1 Digital Electric Switching) and other Circuit Equipment (2232.1 Circuit Equipment)

Line Gateway Line Terminations Softswitch Concentrator 2232.1 Circuit Equipment

Packet Router Routing between Line and Trunk Gateways

Softswitch Circuit Equipment

2232.1 Circuit Equipment

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Accounting

VoIP Network•Tower

Attached to building (2121 account)Free standing or guyed (2411 account)

•Tower Equipment – Antenna SystemsMostly going to consist of radio equipment (2231.1 accounts)

•Field CabinetMostly going to consist of circuit equipment (2232 accounts)

See embedded RAO Letter 6 for detailed listing of equipment with their respective account classifications

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Accounting

See embedded RAO Letter 6 for detailed listing of equipment with their respective account classifications

Broadband Modem

(2232 – Circuit Equip)

Adaptor(2362 – Other Terminal Equipment)

VoIP Phone (2311 – Station Apparatus)

Regular Telephone(2311 – Station Apparatus)

Satellite(2231.1 – Radio Systems)

Antennae(2231.2 – Other Radio Facilities)

NID(2232 – Circuit Equipment)

Computer(2311 – Station Apparatus)

Fiber

Wireless

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Taxes

Taxes to be collected and remitted:

State Sales Tax

City, County and Other Local Taxes

TUSF Assessment

Federal Universal Service Charge

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Taxes

Taxes not applicable:

Federal Excise Tax

PUC Gross Receipts Assessment

911 Equalization Surcharge

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Reference

NECA VoIP Guideline Paper RAO Letter 6

Accounting for Softswitches RAO Letter 21

The End

Matt Snowden, Bolinger, Segars, Gilbert & Moss, LLP

Email – msnowden@bsgm.com

Phone – (806) 747-3806

Fax – (806) 474-3815

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