The Front Lines

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Advancing The Cause of Competition in the Telecommunications Industry

ANNUAL SECTION 43.61(a) INTERNATIONAL TELECOMMUNICATIONS TRAFFIC REPORTS DUE BY AUGUST 1, 2005

Carriers are reminded that Section 43.61(a) of the Federal Communications Commission's rules requires each common carrier that provided international telecommunications services in year 2004 to file a report of their international traffic data for calendar year

2004 by July 31, 2005.

All common carriers that provided international facilities-based and facilities-resale switched and private line services, or pure switched resale services, in the calendar year are required to file the report regardless of the amount of traffic they provided. Facilities-based services are provided using international transmission facilities that the carrier owns in whole or in part, or that the carrier leases from an entity that does not report those circuits in its own Section 43.61 report. Facilities-resale services are provided by leasing non-switched international circuits from other reporting international carriers. These are distinct from pure switched resale services, which are switched services that are provided by reselling the international switched services of other U.S.-authorized carriers. International facilities-based and facilities-resale switched message telephone and private line services data must be filed on a country-by-country, region and world total basis. International switched telegraph, telex and other miscellaneous services data may be provided on a region and world total basis only. Carriers that provided international pure switched resale services for the calendar year may file world totals only.

Clients seeking assistance with the Section 43.61(a) traffic reporting requirements may contact Jonathan S. Marashlian at snipped-for-privacy@thlglaw.com or

703-714-1313.

MEXICO SET TO OPEN TELECOMMUNICATIONS MARKETS TO RESELLERS

In June 2004, The World Trade Organization ruled that telecommunications regulations in Mexico, which require connection with Mexican operators to complete calls coming from the United States, violate international trade rules. This month, in a first step to comply with the WTO ruling, the Mexican government is expected to implement new regulations that will allow companies to buy and resell domestic long distance from Mexican operators, most notably TelMex.

The regulations would open Mexico's market to any company, big or small, foreign or domestic, that is willing to resell long distance telephone services. Resellers can buy large volumes of airtime from existing carriers at a discount and resell them to consumers and companies by means of calling cards and pre-paid plans. With the expected introduction of resellers into the Mexican telecommunications market, rates are expected to become significantly cheaper.

Within one year after the publication of long distance resale regulations, the Mexican government is also expected to allow resellers to enter other communications markets, such as local and mobile telephony, and pay television.

FCC'S VOIP 911 RULES PUBLISHED IN FEDERAL REGISTER - EFFECTIVE DATE: NOV. 28, 2005 The FCC's Report and Order which requires "interconnected VoIP providers" to provide enhanced 911 ("E911") emergency calling capabilities to their customers was published in the Federal Register on June 29, 2005. As a result of publication, the new rules (which were scheduled to go into effect within 120 days after the effective date of the Order) become effective on November 28, 2005. After this date, it will be unlawful for an interconnected VoIP provider to offer services lacking 911 capability which is the equivalent of traditional landline 911 services.

DC CIRCUIT COURT UPHOLDS DECISION DENYING PAYPHONE SERVICE PROVIDERS PRIVATE RIGHT OF ACTION IN FEDERAL COURT TO COLLECT UNPAID DIAL AROUND COMPENSATION

In APCC Services, Inc., et al. v. Sprint Communications (case

04-7035), a majority of the U.S. Court of Appeals for the D.C. Circuit upheld payphone aggregator, APCC Services', standing to sue on behalf of its payphone service provider (PSP) clients, but ruled that PSPs (or their assignees, i.e., APCC Services) lack a statutory cause of action to sue for recovery of unpaid compensation in federal court. The DC Circuit decision in APCC Services v. Sprint follows the Ninth Circuit Appeals Court's 2003 decision in Greene v. Sprint Communications and further supports the conclusion that, despite creating the right to compensation in Sec. 276 of the Communications Act, Congress did not intend for PSPs to have a federal right to recover unpaid compensation, at least in federal courts. However, neither the APCC Services nor Greene decisions limit a PSPs right to recover in state courts under common law theories. ==========

The Front Lines is a free publication of The Helein Law Group, LLLP, providing clients and interested parties with valuable information, news, and updates regarding regulatory and legal developments primarily impacting companies engaged in the competitive telecommunications industry.

The Front Lines does not purport to offer legal advice nor does it establish a lawyer-client relationship with the reader. If you have questions about a particular article, general concerns, or wish to seek legal counsel regarding a specific regulatory or legal matter affecting your company, please contact our firm at 703-714-1313 or visit our website:

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The Helein Law Group, LLLP

8180 Greensboro Drive, Suite 700 McLean, Virginia 22102
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