North American Numbering Council
(NANC)
Billing & Collection
Working Group
(B&C WG)
May 21, 2010
Co-Chairs:
Rosemary Emmer, Sprint Nextel
Tim Decker, Verizon
Mission Statement / Area of Responsibility
• The Billing and Collection Agent Oversight Working Group
(B&C WG) was chartered 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.
May 21, 2010
B&C WG
2
Current Activities
• Monthly Billing and Collections Oversight
• Monthly Evaluation of Deliverables
• Budget and Contribution Factor Oversight
May 21, 2010
B&C WG
3
Revised Budget & Contribution
Factor
•
•
•
The NANC approved the preliminary contribution factor of 0.0000171 during
the February NANC meeting.
The revised factor approved by the NANC on May 7th was 0.0000181.
When initially preparing the budget, the B&C WG and Welch projected the
overall industry revenue projection to be down by $1B. In fact, once the
preliminary revenue numbers were obtained from USAC (based on the
normal process of form 499A calculated results), the overall revenue
numbers were down by $14B. Therefore, we need to adjust the industry
revenue projection part of the budget used to determine the contribution
factor down by an additional $13B. All other budget assumptions remain the
same. The new contribution factor has been calculated to be 0.0000181.
May 21, 2010
B&C WG
4
July 2010-June 2011
Budget
•Total projected cost for the NANP Fund is $5,497,882
(including $500,000 surplus)
•The US carriers are required to contribute $5,401,443
•The International Participants (Canada and Caribbean
countries) contribute the remaining $96,439
Contribution Factor Options
•
•
•
•
The first scenario uses up the entire anticipated fund surplus at June 30, 2010 of
$1,366,725. The US carriers would be required to fund $4,034,718 with a funding
factor of 0.00001712. This option leaves only the $500,000 in the surplus account
which is the contingency provision.
The second scenario is designed to reduce the surplus by approximately one-half
resulting in a contribution factor of 0.000020. This scenario reduces the surplus by
$687,320. The total contribution by the US carriers would be $4,714,123. There would
be $679,405 excess surplus that could be carried forward to subsidize contributions in
the future.
The third scenario is designed to leave the surplus in the fund resulting in a
contribution factor of 0.0000229. The total contribution by the US carriers would be
$5,401,443. There would be $1,366,725 excess surplus that could be carried forward
to subsidize contributions in the future.
The REVISED scenario still uses up the entire anticipated fund surplus at June 30,
2010 of $1,366,725. The US carriers would still be required to fund $4,034,718 leaving
only $500,000 in the surplus account representing the contingency provision. A factor
in determining the contribution factor is the total industry revenue. At the time that the
budget and the contribution factor were prepared in February, it was estimated that the
industry revenue would decline by $1B. Revised information based on the 2010 Form
499A indicated that the industry revenue declined by $14B. As a result the
contribution factor needed to be increased to 0.0000181 in order to achieve the same
results as the first scenario.
May 21, 2010
B&C WG
6
History of
NANP Fund Size and Contribution Factor
July 2002
to
June 2003
July 2003
to
June
2004
(revised)
July
2004
to
June
2005
July
2005
to
June
2006
July
2006
to
June
2007
July 2007
to
June
2008
July 2008
to
June
2009
July 2009
to
June
2010
Proposed
(Option
1)
July 2010
to
June
2011
Final/Revised #
0.000043
0.000021
0.000021
0.0000052
0.000021
0.0000193
0.0000165
0.0000107
0.0000181
Original
0.000043
0.000036
0.000021
0.0000052
0.000021
0.0000193
0.0000165
0.0000107
0.0000181
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
173,694
114,205
80,468
84,050
83,238
84,821
82,384
10,313,646
4,902,967
4,920,418
1,127,108
4,876,926
4,530,185
Surplus used
3,250,000
4,804,358
2,025,127
5,692,000
1,966,444
1,990,084
Surplus kept
4,434,187
4,000,000
4,248,064
-
-
Contribution Factor
Per Budget
Total budgeted
expenditures **
International
contribution
US contributions
-
1,531,477
1,198,963
85,415
96,439
2,487,497
4,061,036
2,775,177
1,340,407
-
-
** includes contingency allowance
# Final Factor reflects "Revised" factor if different from Original
Source: Factors and amounts compiled by Welch LLP
May 21, 2010
B&C WG
7
B&C WG Membership
•
•
•
•
•
•
•
•
•
AT&T
Bell Canada
Cox
Comcast
CTIA
Sprint Nextel
Qwest
Verizon
800 Response
May 21, 2010
B&C WG
8
Future Meetings
Tuesday, May 20
11:00am Eastern 1hr
Tuesday, June 29
11:00am Eastern 1hr
Tuesday, July 27
11:00am Eastern 1hr
Contact the Co-Chairs for complete meeting or conference call details
Rosemary.Emmer@sprint.com or Timothy.Decker@verizon.com
(Other meetings for the B&C WG may be scheduled as needed
beyond what has been identified above)
B&C WG meeting notes and documents are posted at nanc-chair.org
May 21, 2010
B&C WG
9