FCC Crack Down

Illegally making the sale of a toll free number can cost you… BIG. By law, phone numbers cannot be sold or brokered. In 1997, the FCC made the sale of 800 numbers illegal. Because of the short supply of available numbers, complaints were pouring in at that time that price gouging for the popular numbers was becoming a common practice. The FCC acted quickly, prohibiting sales.

Read more here.

What is FCC 00-237?

FCC 00-237
TOLL FREE FIFTH REPORT AND ORDER

We look to our Federal Advisory Committee on numbering issues, the NANC, for a recommendation on how best to administer toll free numbers. We ask the NANC to address whether a system of administration similar to that used to administer the NANP or a different system should be established. Among the alternatives NANC should consider is whether the ownership and operation of the centralized toll free database system should be transferred to a non-government and/or non-carrier entity, and whether SMS/800 service should continue to be provided under tariff. Additionally, we seek recommendations from the NANC to facilitate the selection of the administrator through a competitive bidding process similar to the process used to select the North American Numbering Plan Administrator.[1] Specifically, we ask the NANC to develop the necessary technical requirements for toll free number administration. We direct the NANC to submit its recommendations to the Commission within 180 days of the effective date of this Order. Upon receipt of the NANC’s recommendations and public comment, we will move expeditiously to determine whether it is in the public interest to restructure the ownership and operation of the current system of toll free number administration, and, if so, whether a new toll free number administrator should be selected.[2]

Toll Free Administration
Management and Oversight Structure

* Break Up the SMT
* Owner/Operators cannot be affiliated with the Administration, Data Center or SCP
* Need Neutral 3rd party Toll Free Administrator, Data Center and SCP

Toll Free Administration
Management and Oversight Structure

Propose that the current SMT be replaced with a Limited Liability Corporation (LLC) similar to what exists for LNP.

The LLC would be open to any entity that provides toll free service.

LLC members will have equal vote

LLC manages the RFP for toll free vendor(s)

LLC manages vendor performance and costs

LLC manages the day-to-day relationship with the vendor

Each member pays a fee to join the LLC to cover the operational costs of the LLC

The FCC has ultimate oversight over the LLC and toll free administration.

Toll Free LLC

Responsible for
o
+ System planning (both long and short term)
+ Database functional requirements
+ Negotiating vendor contracts
+ Ensuring vendor compliance

Toll Free Pricing

* Toll Free Service no longer provided under SMS/800 Access Tariff
* Simplified pricing elements such as:
o Shared industry costs per Section 251(e) of the Telecommunications Act
o Monthly fee for RespOrg system access
o Enterprise Services