FCC Announces Proposed NANP Fund Size Estimate and Contribution Factor for FY2020

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The Wireline Competition Bureau has released a Public Notice announcing the proposed North American Numbering Plan (NANP) Administration fund size estimate and contribution factor for the fiscal year October 1, 2019 through September 30, 20202 (FY2020). Welch LLP (Welch), the NANP billing and collection agent for numbering administration functions, annually develops the projected numbering administration costs and fund size estimate for the upcoming fiscal year. Under FCC Rule Section 52.17, all U.S. telecommunications carriers, including interconnected VoIP providers, are required to contribute to meet the costs of numbering administration. To develop these figures, Welch allocates a portion of the funding requirement to all NANP members, and calculates a Canadian, Caribbean, and U.S. contribution amount and then develops a contribution factor for U.S. telecommunications carriers to collect. Under the FCC’s rules, contributions are based on carriers’ end-user telecommunications revenues for the prior year and the contribution factor. Welch proposes a funding requirement of $11,436,421 for FY2020, and a contribution factor of 0.0000908, which is higher than last year’s factor (0.0000427). The increase is the result of higher contract costs, the recovery of a last year’s deficit ($934,769), and an increase in the contingency fund from $1,000,000 to $2,000,000. The funding requirement contemplates a U.S. contribution of $11,178,803, a Canadian contribution of $164,078, and a Caribbean contribution of $32,818. The fund size estimate and contribution factor are considered approved and effective if the FCC takes no action within 14-days of its announcement.

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