OUS Fund - FAQs: Telecommunication Service Provider Eligibility

Click once on any question to go to the response to that question.

Q1. Do I need a Certificate of Authority to operate in Oregon prior to requesting eligibility? 

Q2. Are there additional criteria for OUS eligibility? 

Q3. Must I provide telephone service throughout a designated service area prior to requesting eligibility status?  

Q4. What is the process for applying to the PUC for eligibility?  

Q5. Is there an eligibility application form?  

Q6. What service areas are eligible to receive OUS support?  

Q7. Does eligibility for the OUS program make me also eligible for participation in the OTAP program and various federal universal service programs?

Q1. Do I need a Certificate of Authority to operate in Oregon prior to requesting eligibility? 

Yes. You must have a current valid Oregon Certificate of Authority to provide local exchange (i.e., intraexchange) switched service prior to petitioning the Public Utility Commission of Oregon (PUC) for OUS support eligibility. An application form for a Certificate of Authority can be obtained by calling Lois Meerdink of the PUC staff at (503) 378-8959 or e-mailing at lois.meerdink@state.or.us.

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Q2. Are there additional criteria for OUS eligibility? 

Yes. To become an eligible local exchange carrier (LEC), your company essentially agrees to share with the incumbent LEC the obligation to serve all customers, both business and residential, who request basic telephone service in the designated service area for which you seek eligibility. Basic service may be provided to customers through owned subscriber plant facilities, leased UNE facilities, or resale of another carrier’s basic retail service. Only the first two methods, however, would receive OUS support. See FAQ: OUS Support and OUS 3 Line Count Worksheet.

The criteria for OUS eligibility are set forth below. See PUC Order No. 00-312, at Issue 14. To qualify as an eligible LEC, the provider shall: 

  1. Offer, throughout the designated service area, services that the PUC has defined to be basic telephone service (see Question 8), using the carrier’s own facilities, leased UNE facilities, or a combination of its own or leased facilities and resale of another carrier’s retail services. This provision includes the requirements that an eligible LEC (a) must build its own loop facilities to service a customer where no facilities currently exist, and (b) must offer the supported services on a stand-alone basis and not simply as part of a more expensive package.
  2. Advertise in media of general distribution throughout the designated service area the availability and prices of supported basic local exchange services. While the Commission did not determine the frequency and type of media, the PUC staff would consider reasonable a frequency of not less than annually in a media that should include a local newspaper and/or telephone directory advertisement.
  3. Offer reduced local exchange rates to eligible low-income residential customers pursuant to the Oregon Telephone Assistance Program (OTAP). See Oregon Administrative Rules 860-033-001 through 860-033-0046.
  4. Not deny or disconnect basic local exchange service to an OTAP customer for failure to pay for toll charges. See OAR 860-021-0335(4)(b) and 47 CFR 54.401(b).
  5. Not require a deposit from OTAP customers who voluntarily elect to receive toll-blocking service. See OAR 860-021-0200(5) and 47 CFR 54.401(c).
  6. Accept the duty to interconnect directly or indirectly with the facilities and equipment of other telecommunications carriers. See 47 CFR 51.100.
  7. Not install network features, functions, or capabilities that do not comply with the 1996 Federal Telecommunications Act’s (Act) requirements for access by persons with disabilities (Section 255 of the Act) and coordination for interconnectivity (Section 256 of the Act). See 47 CFR 51.100.
  8. Not prohibit or impose unreasonable or discriminatory conditions or limitations on the resale of telecommunications services. See Section 251 (b)(1) of the Act and 47 CFR 51.201.
  9. Provide, to the extent technically feasible, number portability in compliance with FCC rules. See Section 251 (b)(2) of the Act and 47 CFR 51.201 .
  10. Provide dialing parity to other telecommunications providers. See Section 251(b)(3) of the Act and PUC Order Nos. 97-107 and 97-238.
  11. Provide access to rights-of-way to other telecommunications providers. See Section 251 (b)(4) of the Act.
  12. Establish reciprocal compensation arrangements for the transport and termination of telecommunications.

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Q3. Must I provide telephone service throughout a designated service area prior to requesting eligibility status? 

No. There is not a precondition that a new entrant be required to provide basic telephone service throughout a service area prior to the carrier’s petition for OUS eligibility. However, there is a requirement that the petitioner make a reasonable demonstration in its petition of its ability and intention to advertise and offer basic telephone service throughout the designated service area (See Criterion 1 and 2) once eligibility is received. See FCC Order 00-248, Paragraphs 12-15, and 24.

Actions of an eligible LEC designed to selectively serve only certain types of customers or serve only certain locations within a service area may be grounds to revoke their OUS eligibility. These actions might include discriminatory pricing, extraordinary delays in processing service requests, high nonrecurring charges, bundling of services in such a manner as to discourage certain types of customers, poor service, late responses to trouble reports, or other acts designed to subvert the terms of the carrier’s eligibility.

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Q4. What is the process for applying to the PUC for eligibility? 

A new entrant seeking OUS eligibility must file an application with the PUC. The applicant must state the service areas (see Question 6) for which eligibility is requested. For each area requested, the applicant must state its capability and willingness to comply with the eligibility criterion set forth in Question 2. Because eligibility places new responsibilities and obligations on the applicant, the applicant should select service areas carefully with a clear plan and commitment in mind to meet service requirements.

The applicant must simultaneously mail a copy of its application to the incumbent LEC in the service areas for which eligibility is being requested. The PUC staff will prepare a recommendation and the Commission will then consider the application in a Public Meeting. The Commission will either grant the application or suspend it for further investigation. The process should normally take about 60 days from the time that the application is received at the PUC until it is considered at a Public Meeting. However, depending on the completeness of the application and the responsiveness of the applicant to staff’s information requests, additional time may be required. Other parties may also comment on the application either orally at the Public Meeting or in writing submitted one week prior to the Public Meeting.

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Q5. Is there an eligibility application form?

Yes. A competitive LEC must file the OUS 4 Eligibility Worksheet. Incumbent LECs were previously designated as eligible in PUC Order 97-481.

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Q6. What service areas are eligible to receive OUS support? 

A service area is the ILEC exchange area for which OUS support eligibility is being sought. A support area is equal to the ILEC’s wire center area for which OUS support is available. A service area may contain more than one wire center. Each wire center may have a unique cost and a unique OUS support amount. A list of all ILEC wire centers in Oregon and the available OUS support amount for each wire center is provided in OUS Support by Wire Center.

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Q7. Does eligibility for the OUS program make me also eligible for participation in the OTAP program and various federal universal service programs? 

Yes. However, arrangements for participation and distribution under the OTAP program should be made through Damara Paris at (503) 373-1413. The federal USF programs are administered by the Universal Service Administrative Company at www.universalservice.org.  

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