FCC Partially Grants XO Petition; Clarifies Wholesale USF Contribution Rules


The FCC has issued an Order on Reconsideration that addresses a petition filed by XO Communications Services, LLC (XO) which sought clarification or partial reconsideration of the Wholesaler-Reseller Clarification Order.  In that order, the FCC clarified certain federal Universal Service Fund (USF) contribution obligations of wholesale providers and their customers.  In its Order on Reconsideration, the FCC has granted XO’s request to “reconsider the use of the clear and convincing evidence standard when the wholesale provider relies on ‘other reliable proof’ to establish a ‘reasonable expectation’ that its reseller customer is contributing to the Fund, and when establishing the reseller’s actual payment of USF contributions.”  As a result, the preponderance of the evidence standard will be applied in those situations.  Additionally, the FCC has denied XO’s request to clarify, or in the alternative reconsider, the use of Confirmatory Certificates to establish actual payment into the USF.

For additional information, please contact Tony Veach.

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