Rural Carriers May Face More Challenges With Traced Act Implementation

Small, rural carriers may find it harder to absorb costs of federal requirements to trace illegal robocalls, said panelists at an FCBA event Thursday on implementing the Traced Act, which became law last year. Voice providers aren't allowed to add line item charges for call blocking services. That doesn't mean carriers won't raise prices. "It depends on the magnitude of the costs" to companies for upgrading their networks and ongoing costs to administer call blocking and traceback efforts, NTCA Senior Vice President-Industry and Business Affairs Mike Romano told us. "If the costs are significant, they'll have to" raise prices, Romano said. He hasn't heard of such plans. Philip Macres of Klein Law Group said he has heard that even for small operators, it can cost $100,000 to upgrade a network for call authentication. "There are upfront costs and ongoing costs to operate," Romano said. USTelecom Senior Vice President-Policy and Advocacy Patrick Halley said operators should be careful in evaluating vendors because risk can be involved "when you have a regulatory obligation to do something in a short period." Romano said NTCA members are sensitive to issues of "reasonable analytics" used for call authentication because rural carriers were the ones that historically had problems with call completion when larger carriers didn't send phone traffic their way. The vast majority of members run IP-based phone networks, Romano said, which makes it easier to provide caller authentication for traffic originating on them. Too often, rural carriers must rely on tandem networks that still use TDM switching, he said: In many of those cases, authenticated calls from the small IP-based phone companies "will be sending out [authentication] certificates to nowhere."