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program The Schools and Libraries component provides up to $25 billion annually to help schools and libraries obtain whatever telecommunications services they desire, as well as internal connections and maintenance of telecommunications networks The Rural Health Facilities component provides subsidies of up to $400 million to help rural health care providers obtain telecommunications services at rates comparable to those in larger markets The Act mandates that all providers of interstate telecommunications services contribute support payments to a Universal Service Fund Utilizing its discretionary authority under the Act, the FCC also requires entities that provide interstate telecommunications for a fee on a non-common carrier basis to contribute to the Universal Service Program This requirement does not include entities such as utilities, that purely operate networks to meet their internal needs, and which are not made available to third parties for a fee Nor does the requirement extend to private networks that are utilized to provide services to public safety or governmental entities All providers of interstate telecommunications services, and other providers, are required to make contributions to the fund and complete a universal service Worksheet on a biannual basis Support payments are based on revenues generated from end users The FCC therefore does not require wholesale carriers to contribute to the universal support mechanisms, provided that the carrier who utilizes the wholesale capacity to offer retail services makes such contributions itself Thus, a utility that provides wholesale telecommunications capacity under a carrier s carrier arrangement will not be subject to a universal service contribution requirement, because this does not create end user revenues for the utility Nevertheless, all carriers, including carriers carriers, are required to complete a Worksheet The FCC has adopted a new uni ed Telecommunications Reporting Worksheet that is to be utilized for the biannual reporting requirement Telecommunications providers whose estimated interstate contributions to universal service support mechanisms would be de minimis, are not required to contribute funds or le Worksheets (under certain conditions) The FCC has de ned de minimis as a contribution that would be less than $10 000 Providers whose contribution is de minimis are nevertheless required to retain a copy of the Worksheet for three years as documentation of their exemption The FCC s proposed treatment of wireline Internet access services as information services, rather than telecommunications services, could potentially have an adverse impact on the Universal Service Fund by removing a signi cant source of revenue contributions
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476 Other important federal provisions
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Additional federal provisions include:
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r the cable provisions of Title VI of the Communications Act; r Section 332 of the Communications Act, which sets forth federal requirements on providers r Section 103 of the Communications Act, which allows registered public utility holding
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companies that would otherwise be subject to the core-business restrictions in the Public Utility Holding Company Act of 1935 to provide telecommunications services, information services and other communications services; r Section 401 of the Communications Act, which requires the FCC to forbear from applying any regulation or any provision of the Act to a telecommunications carrier or telecommunications service, or class of telecommunications carriers or telecommunications services, in any or some of its, or their, geographic territory if the Commission determines that enforcement of wireless services;
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of such a requirement is not necessary to ensure just, reasonable and nondiscriminatory conduct, or to protect consumers, and that forbearance is in the public interest; r federal copyright, antitrust, tax and other laws of general applicability
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48 State regulatory issues 481 Certi cation
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The discussion in this section is limited to state regulatory issues applicable to telecommunications services Cable services are generally regulated at the local level rather than at the state level Internet access services are typically not regulated at all, except when provided by dominant incumbent local exchange carriers under certain circumstances Also, we do not discuss state municipal laws and the vast number of other state legal issues that apply generally to service providers States generally regulate, or at least require some form of ling, for almost all intrastate telecommunications service activities eg, at least nominal regulation of facilities-based providers of intrastate services States typically assert this jurisdiction even if only a small amount of the services provided are intrastate Recent statutes authorizing municipal entry into telecommunications typically require initial approval by the state public service commission via a certi cate of public convenience or comparable authorization (eg, Iowa), and sometimes an ongoing role in overseeing compliance with statutory conditions of entry (eg, Virginia) Applicants must typically demonstrate that they have the legal, technical, nancial and managerial quali cations to provide the proposed services States vary with respect to the degree of scrutiny involved in granting a certi cate
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