Discontinuance of Telecommunications
Service
What Companies and Bankruptcy Professionals
Must Do
- You must notify your customers in writing as
far in advance as possible if you are going to discontinue, reduce
or impair domestic service for any reason, even if you may file or
have filed for bankruptcy.
- Your letter must include:
- Carrier name and address
- Date you plan to discontinue service
- Geographic areas affected
- Description of your service
- Notice of the customer's right to file comments with the FCC, including
deadlines and information they should include in their comments.
- All companies, whether or not they are under
bankruptcy protection, must comply with the FCC's discontinuance rules. The
FCC may impose penalties on carriers for failing to comply with the
rules.
- On or after the date on which you provide written
notice to your customers, you must file an application with the FCC.
- Before you send the application to the FCC,
you must pay all outstanding debts owed to the FCC. If you owe
the FCC money but filed for bankruptcy protection, you must notify
the Office of Managing
Director in writing. The FCC will not release a Public Notice on
your discontinuance application if you are red-lighted in
the FCC's system (meaning you owe the FCC money).
- On or before the date you send the application
to the FCC, you must also notify and submit a copy of the application
to the Secretary of Defense, the state PUCs and the governors of the
states in which service will be affected.
- The FCC will issue a public
notice triggering the start of a public comment period.
- Normally, the FCC will automatically grant
the discontinuance application within 31 days after release of the
public notice for non-dominant carriers and 60 days for dominant
carriers, unless the FCC notifies you that the application will not
be automatically granted.
NOTE: This web page provides only general guidelines. Companies
discontinuing domestic operations must follow all FCC Rules (47
CFR Section 63.71) and Section
214 of the Telecommunications Act of 1996.
Q & A
Q. What kind of carriers do the discontinuance
rules apply to?
A. The rules apply to all carriers, including competitive local
exchange carriers (CLECs), incumbent local exchange carriers (ILECs),
and long-distance carriers, including resellers.
Q. Where do I get a sample discontinuance
application?
A. View other applications that have been filed with the FCC.
Q. How do I file the application with the
FCC?
A. Mail applications to:
Office of the Secretary
Federal Communications Commission
445 12th St. SW, Room TW-A325
Washington, D.C. 20554
ATTN: Competition Policy Division, Wireline Competition Bureau.
Q. How long before I can discontinue service?
A. Normally, the FCC will automatically grant the domestic discontinuance
application within 31 days for non-dominant carriers and 60 days for
dominant carriers, unless the FCC notifies you that the grant will not
be automatically granted.
Q. How will I know when the public notice
comes out?
A. Check the FCC's discontinuance web
site.
Q. What if I filed for bankruptcy and may
not be able to fund operations up to the date when the FCC grants
me authority to stop service?
A. At a minimum, carriers that anticipate difficulty in fully complying with discontinuance rules should inform the Commission as soon as possible to avoid a loss of service to customers. All carriers, including those in bankruptcy, are responsible
for compliance with section 214 of the Act and the FCC's discontinuance
rules. The FCC may impose penalties for failing to comply with these rules.
Q. What are the penalties for failing to
comply with FCC discontinuance rules?
A. The base forfeiture is $5,000 per violation. This amount may
be subject to either upward or downward adjustment depending on the facts
of a particular case.
Q. Whom can I contact at the FCC concerning
discontinuance of domestic service?
A. Contact the Competition Policy Division of the Wireline Competition
Bureau at 202-418-1580.
Q. What is the statute governing discontinuance
of service?
A. Section
214 of the Communications Act of 1934.
Q. What FCC rules govern the discontinuance
of domestic service?
A. 47
CFR Sec. 63.71
Q. Are there different rules that govern
the discontinuance of international service?
A. Yes, 47
CFR Sec. 63.19.
Q. Whom can I contact at the FCC concerning
discontinuance of international service?
A. Contact the Policy Division of the International Bureau at
202-418-1460. |