September 9, 2020 FACT SHEET* Promoting Caller ID Authentication to Combat Illegal Robocalls: Further Implementation of the TRACED Act Second Report and Order – WC Docket No. 17-97 Background: Each day, Americans receive millions of unwanted phone calls, including calls that falsify caller ID information with malicious intent, resulting in billions of dollars lost to fraud, the degradation of consumer confidence in the voice network, and harm to public safety. Caller ID authentication technology enables voice service providers to verify that the caller ID information transmitted with a particular call matches the caller’s number—and provides valuable information to detect illegally spoofed calls. The STIR/SHAKEN framework is an industry-standard caller ID authentication solution that operates solely on Internet Protocol (IP) networks. The Commission’s March Report and Order and Further Notice of Proposed Rulemaking in this proceeding required all voice service providers to implement STIR/SHAKEN in the IP portions of their networks by June 30, 2021, consistent with the recently-enacted TRACED Act. This Second Report and Order would continue the FCC’s work to implement the TRACED Act and promote the deployment of caller ID authentication technology. What the Second Report and Order Would Do: • Require voice service providers to either upgrade their non-IP networks to IP and implement STIR/SHAKEN, or work to develop a non-IP caller ID authentication solution. • Establish extensions of the June 30, 2021 caller ID authentication implementation deadline for small voice service providers, voice service providers that are currently incapable of obtaining a “certificate” necessary to implement STIR/SHAKEN, services scheduled for discontinuance, and non-IP networks. • Require voice service providers subject to an extension to implement a robocall mitigation program on the non-STIR/SHAKEN-enabled portions of their networks. • Require all voice service providers to file a certification in a Commission database showing how they are acting to stem the origination of illegal robocalls. • Establish a process by which providers that make early progress on caller ID authentication implementation can obtain an exemption from the June 30, 2021 deadline, as required by the TRACED Act. • Prohibit voice service providers from adding any line item charges to the bills of consumer or small business customer subscribers for caller ID authentication technology, as required by the TRACED Act. • Require intermediate providers to implement the STIR/SHAKEN caller ID authentication framework in the IP portions of their networks by June 30, 2021. * This document is being released as part of a “permit-but-disclose” proceeding. Any presentations or views on the subject expressed to the Commission or its staff, including by email, must be filed in WC Docket No. 17-97, which may be accessed via the Electronic Comment Filing System (http://www.fcc.gov/ecfs). Before filing, participants should familiarize themselves with the Commission’s ex parte rules, including the general prohibition on presentations (written and oral) on matters listed on the Sunshine Agenda, which is typically released a week prior to the Commission’s Meeting. See 47 CFR § 1.1200 et seq. Federal Communications Commission FCC-CIRC2009-04 Before the Federal Communications Commission Washington, D.C. 20554 In the Matter of ) ) WC Docket No. 17-97 Call Authentication Trust Anchor ) ) SECOND REPORT AND ORDER∗ Adopted: [] Released: [] Comment Date: (30 days after date of publication in the Federal Register) Reply Comment Date: (60 days after date of publication in the Federal Register) By the Commission: TABLE OF CONTENTS I. INTRODUCTION .................................................................................................................................. 1 II. BACKGROUND .................................................................................................................................... 5 III. SECOND REPORT AND ORDER...................................................................................................... 16 A. TRACED Act Definitions and Scope ............................................................................................ 17 B. Caller ID Authentication in Non-IP Networks .............................................................................. 24 C. Extension of Implementation Deadline.......................................................................................... 36 1. Assessment of Burdens and Barriers to Implementation and Extensions for Undue Hardship .................................................................................................................................. 39 2. Extension for Certain Non-Internet Protocol Networks .......................................................... 65 3. Reevaluating Granted Extensions............................................................................................ 70 4. Robocall Mitigation Program .................................................................................................. 73 5. Alternative Methodologies During an Extension .................................................................... 90 6. Legal Authority ....................................................................................................................... 92 D. Voluntary STIR/SHAKEN Implementation Exemption ................................................................ 96 1. Relationship of IP Networks and Non-IP Networks Provisions .............................................. 98 2. Threshold for IP Networks Exemption .................................................................................. 101 3. Threshold for Non-IP Networks Exemption ......................................................................... 109 4. Compliance Certifications ..................................................................................................... 112 5. Voice Service Providers Eligible for Exemption .................................................................. 120 E. Line Item Charges ........................................................................................................................ 121 ∗ This document has been circulated for tentative consideration by the Commission at its September 2020 open meeting. The issues referenced in this document and the Commission’s ultimate resolution of those issues remain under consideration and subject to change. This document does not constitute any official action by the Commission. However, the Chairman has determined that, in the interest of promoting the public’s ability to understand the nature and scope of issues under consideration, the public interest would be served by making this document publicly available. The FCC’s ex parte rules apply and presentations are subject to “permit-but-disclose” ex parte rules. See, e.g., 47 C.F.R. §§ 1.1206, 1.1200(a). Participants in this proceeding should familiarize themselves with the Commission’s ex parte rules, including the general prohibition on presentations (written and oral) on matters listed on the Sunshine Agenda, which is typically released a week prior to the Commission’s meeting. See 47 CFR §§ 1.1200(a), 1.1203. Federal Communications Commission FCC-CIRC2009-04 F. Intermediate Providers ................................................................................................................. 127 1. Authenticated Calls ............................................................................................................... 128 2. Unauthenticated Calls ............................................................................................................ 135 3. Limiting Intermediate Provider Requirements to IP Networks ............................................. 143 4. Definition of Intermediate Provider ...................................................................................... 146 5. Legal Authority ..................................................................................................................... 148 G. Other Issues .................................................................................................................................. 151 IV. PROCEDURAL MATTERS .............................................................................................................. 153 V. ORDERING CLAUSES ..................................................................................................................... 157 APPENDIX A – FINAL RULES APPENDIX B – FINAL REGULATORY FLEXIBILITY ANALYSIS I. INTRODUCTION 1. Protecting Americans from the dangers of unwanted and illegal robocalls is our top consumer protection priority.1 More than just an annoyance, these calls are a tool for scammers to take advantage of unsuspecting Americans. Bad actors often “spoof” or falsify caller ID information and deceive call recipients into believing they are trustworthy.2 Even in the midst of the COVID-19 pandemic, bad actors have continued their attempts to use illegal spoofing to target American consumers, once again illustrating the pervasiveness of this problem.3 2. As part of our multi-pronged approach to combat this vexing issue, 4 we have made it a priority to stop the practice of illegal caller ID spoofing.5 For instance, we have issued hundreds of millions of dollars in fines for violations of our Truth in Caller ID rules.6 We recently proposed a 1 See e.g., FCC Chairman Ajit Pai, Blocking and Tackling