Telecommunications Regulatory Compliance 

An increasingly complex regulatory environment and an expanding legislative menu are making it imperative for communications companies to stay abreast of changing regulatory compliance requirements. Regulatory subsidies and stimulus programs are targeting high-speed broadband/data services in lieu of legacy voice telecommunications services, and with new or changing regulation comes increased scrutiny and reporting. More stringent accountability standards mean communications companies across all tiers will be expected to enhance their control, monitoring, reporting and compliance capabilities. Communications clients need assistance in assessing and optimizing their regulatory compliance activities in the current and future environment.
KPMG’s Telecommunications Regulatory Compliance professionals can help your communications organization comply with applicable Federal Communications Commission (FCC) and state regulatory requirements.

Our services include:
  • Performing or helping you prepare for regulatory compliance audits
  • Enhancing regulatory processes and controls
  • Improving regulatory processes to help drive revenue enhancement and cost optimization while maintaining compliance
  • Assisting you in the regulatory revenue record to report process, including the proper identification and allocation of revenues and costs to appropriate categories and jurisdictions
  • Assisting you with regulatory and revenue-related filings, disputes, settlements and contract issues

Potential Benefits
Clients that have worked with KPMG have reported numerous benefits from our services, including:
  • Reduced risk of regulatory non-compliance, limiting fines and penalties and regulatory audit exposure
  • Potential reductions in federal USF contributions, resulting in increased net income and/or reduced customer billings
  • Increased effectiveness and efficiency of regulatory reporting process
  • Enhanced awareness of regulatory changes and related business implications/risks
  • Enhanced preparation for compliance audits from regulatory agencies and third-parties with minimal disruption to normal operations
  • Automation of regulatory processes with appropriate controls, enabling continuous monitoring of regulatory compliance and timely reporting

Featured Success Story
KPMG’s team helped a Tier 1 communications carrier address a gap between contributions to the Universal Service Fund and related customer surcharges. KPMG helped address complex issues related to large business contracts and credits, services involving third-party resellers, evaluation of the appropriate assessment of bundled service packages, and services offered over new technology platforms (VoIP). KPMG identified immediate and longer-term actions the company could take to better account for and recover USF revenue, resulting in significant savings over a six-month period.

For more information about KPMG’s Regulatory Compliance for Telecommunications, please contact:

Carl R. Geppert

Questions to consider

  • Have you received Broadband Stimulus funding pursuant to the Broadband Stimulus Act of 2009?
  • Are you currently subject to regulatory-mandated compliance audits at the federal or state level?
  • Have you assessed the impacts to your business of the FCC’s National Broadband Plan and specifically the FCC’s November 2011 USF/ICC Reform Order?
  • Do you offer bundled services to customers involving wireline, wireless, voice and data services offered by multiple affiliates and/or technologies?
  • Are extensive manual adjustments and/or reconciliations required when preparing regulatory reports?
  • Are regulatory reports prepared consistently across jurisdictions and affiliated entities?
  • Do you have a formal process to assess risk related to current regulations and pending regulatory changes?