North American Numbering Council(NANC)

Billing & Collection Working Group

(B&C WG)June 20, 2013

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.

2June 20, 2013

Current Activities

• Monthly Billing and Collections Oversight

• Monthly Evaluation of Deliverables

• Finalized a contingency plan to have for future reference in the event an extenuating circumstance were to arise where expenditures may exceed proposed budget

• Year end Welch performance evaluation completed

3June 20, 2013

US Carrier Contribution Factor

• The US carriers are required to contribute $6,005,354 to the Fund by direct contributions and by reduction in the fund surplus. The International Participants (Canada and Caribbean countries) contribute the remaining $128,592 of the projected costs. The option selected assume the use of the entire anticipated surplus at June 30, 2013.

• During the February 2013 NANC meeting, the NANC agreed to approve a contribution factor ‘range’  between 0.0000286 and 0.000028 based on a projected revenue base of between $194B to $198B.

• The Billing and Collection Agent (Welch) received the preliminary revenue data from USAC and it looks like the revenue base will be approximately  $194B.  However, we felt the need to increase the contingency allowance to $1,250,000 from $1,000,000 to account for any possible increases in 2 numbering contracts that are still pending.

 

• The NANC endorsed the contribution factor of 0.0000302 on May 7, 2013.  

• We’d like to Thank the NANC for responding so quickly.

June 20, 2013 4

June 20, 2013 5

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

2012 Welch LLP Performance Review

June 20, 2013 6

• 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.

2012 Welch LLP Performance Review

June 20, 2013 7

The B&C WG considered, reviewed and analyzed the following data while compiling overall evaluation:

Monthly deliverables matrix overall score

2012 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/printedmaterial

2012 Welch LLP Performance Review

June 20, 2013 8

Welch LLP rating for 2012 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

Contingency Plan

The purpose is to provide a process to address certain contingent needs related to the responsibilities of the NANC B&C WG.

The scope enables the B&C WG to ensure the following:

•Annual forecasting activities and assuring sufficient funding under the NANP as required by federal law

•Predictable annual contribution factors for carriers and member countries

•Ensure the functional requirements are adhered to and complied with

June 20, 2013 9

Contingency Plan

In order to ensure the WG is prepared for a situation where annual funding requirements for NANP activities are less than the billed amount received by the Agent, we have listed a section of ‘Triggers’.

For example:•Contractual changes to existing agreements outside current terms•Change Orders which exceed the projected cost or remaining monthly expenditures available •Accounts payable factors such as slow payment or lack of payment

June 20, 2013 10

Contingency Plan

• To date the FCC via government procurement and contracting processes have aided in efforts to mitigate the need for the BCWG to direct the B&C Agent to bill additional funding requirements to address any NANP funding activity shortfalls. However we have defined a general timing requirement which is basically to meet with the Agent as soon as possible – then the FCC and NANC – to work cooperatively and effectively in a timely manner to ensure positive balances exist in all accounts.

• Implementation – once the approvals for an out-of-cycle billing to provider and NANP member countries has been approved, the Agent will notify billed parties and begin the process of preparing operations, and will notify B&C WG and NAN on the successful completion and sufficient funding.

June 20, 2013 11

NANC Action Items

• Approve Billing and Collection Agent 2012 Performance Evaluation as submitted by B&C WG.

• Endorse Contingency Plan

June 20, 2013 12

B&C WG Membership

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

13June 20, 2013

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,

June 25

Tuesday,

July 16

14June 20, 2013