North American Numbering Council(NANC)

Billing & Collection Working Group

(B&C WG)March 27, 2014

Co-Chairs:

Tim Decker, Verizon

Rosemary Emmer, Sprint Nextel

Mission Statement / Area of Responsibility

• The Billing and Collection Agent Oversight Working Group (B&C WG) was formed by and reports to the North American Numbering Council (NANC) and is responsible for overseeing the performance of the functional requirements provided by the North American Numbering Plan Billing and Collection Agent (B&C Agent).

• The B&C WG will investigate/review the performance of the B&C Agent and submit reports at each NANC meeting to fully inform NANC of the B&C Agent’s performance with respect to the functional requirements.

• The B&C WG will identify and determine the financial impact, feasibility and/or the appropriateness of initiatives/activities that may need to be included in the budget.

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Current Activities/Discussion Topics

• Monthly Billing and Collections Oversight

• Monthly Evaluation of Deliverables

• B&C Agent Contract

• Budget/Contribution Factor

• Funding Year

• Vendor yearly performance evaluation

• NANC Action Items

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Contract Renewal

The contract expired October 1, 2009. Welch LLP received an 8 month interim contract which includes a 2 month transition which will cover the period from December 1, 2013 to July 31, 2014.

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Contribution Factor

Revenue Contribution Base

The revenue estimates were determined by first reviewing the actual 2012 US carrier revenues reported on the April 1, 2013 Form 499A.

A range of revenue estimates were provided. This allows analysis of how the contribution factor is affected given various possible revenue scenarios. This figure will be reviewed at the end of April 2014 when preliminary revenue figures from the 2014 Form 499A will be available. The preliminary revenue figures will be analyzed to finalize the revenue assumption and consequently finalize the contribution factor. Please note this factor will be an increase over last year.

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Budget/Contribution Factor

The options provided subsidize the funding requirement by using up all of the surplus fund balance.

 

•Balance to be funded $7,041,526

•Anticipated surplus at June 30/14 per Dec 31/13 NANC report ($319,672)

•Net US Carrier Contribution requirement $6,721,854

The contribution factor will be within this range Contribution Factor

If revenue base is $190B ……………………………………….0.0000354

If revenue base is $184B ……………………………………… 0.0000365

Note:

The B&C WG will be monitoring the FCC decisions regarding payment of test bed operations per FCC Order 14-5.

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History of Past Budgets and Contribution Factors

March 2000to

June 2001(revised)

July 2001 to

June 2002

July 2002 to

June 2003

July 2003to

June 2004(revised)

July 2004to

June 2005

July 2005to

June 2006

July 2006to

June 2007

July 2007to

June 2008

July 2008to

June 2009

July 2009to

June 2010

July 2010to

June 2011

July 2011to

June 2012

July 2012to

June 2013

July 2013to

June 2014Contribution Factor

Final/Revised # 0.000043 0.000043 0.000043 0.000021 0.000021 0.0000052 0.000021 0.0000193 0.0000165 0.0000107 0.0000181 0.000022 0.0000254 0.0000302Original 0.0000577 0.000043 0.000043 0.000036 0.000021 0.0000052 0.000021 0.0000193 0.0000165 0.0000107 0.0000181 0.000022 0.0000254 0.0000302

Per BudgetTotal budgeted expenditures **12,630,500 14,783,140 13,737,340 9,821,530 7,026,013 6,903,158 6,922,608 6,605,140 5,508,944 5,348,089 5,497,882 5,857,267 6,187,045 6,442,662 International contribution 211,563 166,620 173,694 114,205 80,468 84,050 83,238 84,821 82,384 85,415 96,439 94,944 94,923 128,592 US contributions 12,418,937 9,780,878 10,313,646 4,902,967 4,920,418 1,127,108 4,876,926 4,530,185 2,487,497 4,034,718 4,620,882 5,139,392 6,314,070 Surplus used NA 4,835,643 3,250,000 4,804,358 2,025,127 5,692,000 1,966,444 1,990,084 1,531,477 2,775,177 1,366,725 1,141,441 952,730 453,782 Surplus kept NA NA 4,434,187 4,000,000 4,248,064 - - - 1,198,963 - - - - -

** includes contingency allowance# Final Factor reflects "Revised" factor if different from Original

Source: Factors and amounts compiled by Welch LLP

History ofNANP Fund Size and Contribution Factor

Funding Year

• We are discussing moving the funding year to align with the federal fiscal year, we feel the month of September would be an ideal timeframe for our budget. Currently the funding year ends in June. We bill in June based on revenue figures received in May and we collect beginning in July.

• The Form 499A is due in April and USAC requires time to collate the data in April and May, which does not give us much time for planning our budget.

• We are in the beginning stages of planning. We would need a year notice in order to set the contribution factor higher to carry us through transition of 3-4 months. We would then bill for a 15-16 month timeframe for that unique (one time) cycle.

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2013 Performance Evaluation

• Developed the evaluation consistent with the monthly deliverable matrix. B&C WG evaluates Welch LLP performance monthly.

• Rating schematic used for performance was Met/Not Met.

• Scheduled conference calls to gain industry consensus on rating and evaluation.

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2013 Performance Evaluation• The B&C WG considered, reviewed and analyzed the following data while compiling

overall evaluation:

• Monthly deliverables matrix overall score

• 2013 team meeting materials (from monthly calls)

• FCC/NANC reports, monthly reports

• Customer Service, processes

• Clean-up of receivables

• B&C WG observations

• Co-chair interaction with Welch LLP

• Contribution Factor and Budget related communication/printed material

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2013 Performance Evaluation

Welch LLP rating for 2013 was “MET”. This rating is defined below:

Met performance requirement (s)

Met requirements in order to be considered successful

Performance was competent and reliable

Decisions and recommendations were within requirements and expectations

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NANC Action Items

Approve Billing and Collection Agent 2013 Performance Evaluation as submitted by B&C WG.

Approve budget/contribution factor range

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B&C WG Membership

• AT&T• Cox• Sprint• CenturyLink• Verizon• T-Mobile

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Future Meetings/Contact Information

Contact the Co-Chairs for complete meeting or conference call details

Rosemary.Emmer@sprint.com or Timothy.Decker@verizon.com

B&C WG meeting notes and documents are posted at:

nanc-chair.org

Tuesday, April 29, 2014

Tuesday, May 27, 2014

Tuesday, June 24, 2014

Tuesday, July 29, 2014

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