TEXAS STATEWIDE TELEPHONE
COOPERATIVE, INC.
Accounting and Customer Service
Conference - 2014
Regulation and Accounting for
VoIP
Presented by:
Matt Snowden, C.P.A.
Bolinger, Segars, Gilbert & Moss, L.L.P.
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TOPICS
2

Regulation

Accounting

Taxes
Regulation
3

Is it regulated?

Depends

Three different scenarios
Regulation

4
Scenario One

ILEC/CLEC provides basic local exchange service using VoIP
technology

Regulated? Yes!
Regulation

5
Scenario Two

ILEC/CLEC provides a combination of basic local exchange
service and DSL service, over which a VoIP service is
provided by an entity other than the ILEC/CLEC

Regulated? Yes and No
Regulation

6
Scenario Three

ILEC/CLEC provides a data-only DSL service over which a
VoIP service is provided by an entity other than the
ILEC/CLEC

Regulated? Yes and No
Additional Regulation

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FCC has acted to ensure VoIP providers comply with
important public safety requirements and public policy
goals.
Additional Regulation – E911

All interconnected VoIP providers must:




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Provide 911 service to all of their customers
Obtain customer’s physical location at which the service will
first be used
Transmit all 911 calls (including callback number and physical
location) to appropriate emergency services call center or local
emergency authority
Inform and obtain affirmative acknowledgement from new and
existing customers of the limitations of their 911 service
Additional Regulation - Other
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
Local Number Portability (LNP)

Customer Proprietary Network Information (CPNI)

Telecommunication Relay Service (TRS) requirements
Accounting
VoIP Network
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Accounting
VoIP Network
STP
Class 4
or 5
TDM
Switch
11
2232
Circuit
Equipment
TDM
Softswitch
Signaling
Gateway
Media
Gateway
Media
Gateway
Controller
Border
Session
Controller
Accounting

What is a “Switch”?





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Centers around interconnection
Controls the call
Interfaces other network elements
Must support the origination and termination of a call
Serves functions such as routing, billing, traffic measurement
and custom calling
Accounting – TDM Softswitch
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Softswitch
Elements
Functionality
Classification
Account
Softswitch controller +
Signaling Gateway
Call Control
SS7 Interface
Standalone Softswitch
Controller – Not a switch
2232.1 Circuit
Equipment
Softswitch controller +
Signaling Gateway +
Line Gateway +
Trunk Gateway +
Packet Router
Call Control
SS7 Interface
Line Terminations
Trunk Terminations
Routing for L-L and L-T
and possible T - T
Softswitch End Office with
associated circuit equipment
or Softswitch Tandem
Switch
Softswitch End
Office (2212.1
Digital Electric
Switching) and other
Circuit Equipment
(2232.1 Circuit
Equipment)
Line Gateway +
Trunk Gateway +
Packet Router
Line Terminations
Trunk Terminations
Routing for L-L and L-T
and possible T-T
Softswitch Remote with
associated circuit equipment
(Requires Softswitch
controller and Signaling
Gateway for call routing and
other functionalities)
Softswitch Remote
(2212.1 Digital
Electric Switching)
and other Circuit
Equipment (2232.1
Circuit Equipment)
Line Gateway
Line Terminations
Softswitch Concentrator
2232.1 Circuit
Equipment
Packet Router
Routing between Line
and Trunk Gateways
Softswitch Circuit Equipment
2232.1 Circuit
Equipment
Accounting
VoIP Network
•Tower
Attached to building (2121 account)
Free standing or guyed (2411 account)
•Tower Equipment – Antenna Systems
Mostly going to consist of radio equipment
(2231.1 accounts)
•Field Cabinet
Mostly going to consist of circuit equipment
(2232 accounts)
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See embedded RAO Letter 6 for detailed listing of equipment with
their respective account classifications
Accounting
Antennae
(2231.2 – Other
Radio Facilities)
Satellite
(2231.1 – Radio
Systems)
Wireless
Fiber
NID
(2232 – Circuit
Equipment)
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Adaptor
(2362 – Other
Terminal Equipment)
N
I
D
Broadband
Modem
(2232 – Circuit
Equip)
Regular Telephone
(2311 – Station
Apparatus)
VoIP Phone
(2311 – Station
Apparatus)
Computer
(2311 – Station
Apparatus)
See embedded RAO Letter 6 for detailed listing of equipment with
their respective account classifications
Taxes

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Taxes to be collected and remitted:

State Sales Tax

City, County and Other Local Taxes

TUSF Assessment

Federal Universal Service Charge
Taxes

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Taxes not applicable:

Federal Excise Tax

PUC Gross Receipts Assessment

911 Equalization Surcharge
Reference
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NECA VoIP Guideline Paper
RAO Letter 6
Accounting for Softswitches
RAO Letter 21
The End
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
Matt Snowden, Bolinger, Segars, Gilbert &
Moss, LLP

Email – [email protected]

Phone – (806) 747-3806

Fax – (806) 474-3815