TMP Regulatory & Compliance Issues 2 — Questions and Answers
Question 1: Under the Telecommunications Act of 1996, what obligation do incumbent local exchange carriers (ILECs) have regarding network elements?
- They must sell entire networks to competitors at cost
- They must unbundle network elements and lease them to competitors at cost-based rates (Correct answer)
- They may refuse competitors access to any proprietary infrastructure
- They must donate excess capacity to nonprofit organizations
Correct answer: They must unbundle network elements and lease them to competitors at cost-based rates
The 1996 Act's unbundling provisions require ILECs to lease individual network elements (UNEs) to competing carriers at TELRIC-based rates.
Question 2: Which FCC rule requires telecommunications carriers to ensure that emergency services can identify the location of a 911 caller using a wireless device?
- CALEA
- E911 Phase II rules (Correct answer)
- CPNI Order
- Net Neutrality Order
Correct answer: E911 Phase II rules
FCC E911 Phase II rules require wireless carriers to provide both the caller's callback number and precise location to Public Safety Answering Points (PSAPs).
Question 3: A carrier is found to have shared customer proprietary network information (CPNI) with a marketing affiliate without customer opt-in approval. Which agency has primary enforcement authority?
- Federal Trade Commission
- Department of Justice
- Federal Communications Commission (Correct answer)
- National Telecommunications and Information Administration
Correct answer: Federal Communications Commission
The FCC enforces CPNI rules under 47 U.S.C. § 222, and can impose forfeitures on carriers that unlawfully disclose or share CPNI.
Question 4: What is the primary purpose of the Universal Service Fund (USF) in U.S. telecommunications regulation?
- To fund spectrum auctions and license fees
- To subsidize broadband infrastructure for federal agencies
- To ensure affordable telecommunications service in high-cost, rural, and low-income areas (Correct answer)
- To compensate carriers for CALEA compliance costs
Correct answer: To ensure affordable telecommunications service in high-cost, rural, and low-income areas
The USF, administered by USAC under FCC oversight, provides subsidies to extend affordable phone and broadband services to underserved and high-cost areas.
Question 5: Which concept describes the FCC's authority to impose obligations on broadband internet access providers as a matter of telecommunications policy?
- Secondary liability doctrine
- Common carriage reclassification (Correct answer)
- Mandatory interconnection
- Spectrum overlay licensing
Correct answer: Common carriage reclassification
Reclassifying broadband as a Title II telecommunications service subjects ISPs to common carrier obligations, enabling the FCC to enforce net neutrality and other rules.
Question 6: A telecom company operating internationally must comply with data localization laws in certain countries. What does data localization typically require?
- Encrypting all data using government-approved algorithms
- Storing and processing citizens' data on servers physically located within that country (Correct answer)
- Sharing all network data with the host country's intelligence agencies
- Paying tariffs on cross-border data transmissions
Correct answer: Storing and processing citizens' data on servers physically located within that country
Data localization laws require that certain categories of data about a country's residents be stored and processed on servers within that country's borders.
Question 7: Under FCC rules, what is the definition of 'slamming' in the context of telecommunications compliance?
- Unauthorized switching of a customer's long-distance or local carrier (Correct answer)
- Placing unsolicited charges on a customer's phone bill
- Blocking competitor access to network facilities
- Interfering with emergency service transmissions
Correct answer: Unauthorized switching of a customer's long-distance or local carrier
Slamming is the unauthorized change of a consumer's telecommunications provider, which is prohibited under FCC rules and subject to significant penalties.
TMP Regulatory & Compliance Issues 2
Under the Telecommunications Act of 1996, what obligation do incumbent local exchange carriers (ILECs) have regarding network elements?