Telecom Compliance and your Company’s Business Model
“Could my company’s business model be in jeopardy with the latest FCC Ruling?”
This is the question we are most frequently asked. Today, more and more communication service providers are finding they are ill prepared when it comes to FCC Requirements. The recent FCC ruling regarding the $5 million settlement with magicJack, sends a significant message – the FCC is serious about the requirements on VoIP service providers to meet their legal obligations.
Staying abreast of the constantly changing compliance requirements and implementing the appropriate processes to comply when selling in multiple states is time consuming. It’s burdensome, resource-intensive and often times gets overlooked at a company-wide level. If you don’t fully understand the complexity, you are really putting your organization at risk.
Modas Understands the Importance and Significance of Telecom Compliance within your Business
Telecom service providers will see a refined approach when the FCC continues to incorporate progressive telecommunications into the USF structure and pursue those who avoid their obligations in an aggressive nature. In another recent ruling, a communications company was fined $79,000 for not filing their 499Q. The company stated they were de minimis and did not need to contribute to the USF. It’s important to understand, that even if you aren’t required to contribute to USF, you are still required to file your 499Q. Or, you face fines for not filing. This is why you should consider a partnership with Modas. We’ve created our financial back office solution, Momentum, which accurately and appropriately handle federal regulatory filings and remittance.
When the FCC approaches your organization and wants to review your contributions to USF and your interstate revenues, would you be able to defend the audit? More importantly, can you afford the hefty fines? Could you afford five plus years of USF fees owed?
Modas has Telecom Compliance for your Business Handled
Ultimately, in the case of magicJack, the FCC found magicJack failed to report its interstate revenues and contribute to the Universal Service Fund (USF). magicJack agreed to pay the ($5 million) fine and accept the terms of an FCC Consent Decree, including tedious post-settlement compliance duties. This settlement concludes an ongoing investigation stemming back from 2009 and later re-opened in 2014, before finally settling this month.
Proper compliance review and reporting is more important today than ever before. With Momentum, powered by Modas, you are safeguarded knowing your USF contributions are handled. There is no need to worry about an extensive compliance plan – we’ve got that covered. To make sure your communications company is up to date on all state and federal compliance obligations, schedule a confidential consultation and one of our seasoned consultants will speak to you about the best route for your business.