911 Board Committee Seeks Carriers' Input on Reimbursement
Thursday, July 30, 2009 | 05:28am
NASHVILLE - The Policy Advisory Committee of the Tennessee Emergency Communications Board (TECB or Board), met on July 23, 2009 to consider the financial stability of the State’s 911 system. The committee – a group of 911 professionals and representatives of the fire chiefs, police chiefs, sheriffs, and county commissioners associations, emergency management and the Tennessee Municipal League charged with making recommendations to the Board on 911 policy – is considering whether to advise the Board to end its cost recovery program. The cost recovery program, which was initially mandated by the Federal Communications Commission (FCC), reimburses wireless carriers for the costs of providing Phase I and II Enhanced 911 service.
At its July 23, 2009, meeting, the Policy Advisory Committee confronted the need for additional 911 funding in many of the State’s local emergency communications districts. One solution members discussed was to eliminate cost recovery to wireless carriers. Other states have ended cost recovery and some wireless carriers have even stopped requesting reimbursement.
Before offering any recommendations to the TECB, the Policy Advisory Committee is inviting all wireless carriers receiving cost recovery in Tennessee to its August 10 meeting to testify on the potential impact of eliminating the cost recovery program. After hearing from wireless carriers, the Policy Advisory Committee will make recommendations to the TECB to be considered at its next meeting on September 24, 2009.
Cost Recovery – no longer an obligation:
In 1999, the FCC rescinded its mandate requiring that states reimburse wireless carriers for expenses incurred in tower build-out and maintenance. At the time, Tennessee’s focus was to ensure that build-out in the state’s rural areas continued without interruption, enabling seamless, statewide 911 coverage. To that end, Tennessee continued paying cost recovery after the mandate was dropped. And while statewide build-out has waned in the past few years, Tennessee is one of 31 states still paying these monies to carriers.
Budgets tightening statewide:
In May 2009, the TECB sent surveys to its 100 Emergency Communications Districts (ECDs) and conducted meetings across the state to hear testimony regarding the economic status of the ECDs. The feedback showed an underlying concern that with the steady decline in landline revenue (despite increases in the wireless revenue distributed by the TECB) serious economic hardship lies ahead for ECDs throughout the state. When 911 call centers “are struggling to stay alive,“ said Jamison Peevyhouse, “the time for giving (the wireless carriers) money to do Phase II compliance is past.” Peevyhouse, director of the Weakley County Emergency Communications District, spoke during the May 13 hearing in Jackson. By broad consensus, it is believed that additional revenue is or will be needed to sustain the life-saving work of the ECDs.
In 2008, the TECB spent approximately $9 million dollars for cost recovery to wireless carriers.
“That amounts to about 23 percent of the Board’s total expenditures,” notes TECB Executive Director Lynn Questell. “For a time, that money was handed back to the carriers by FCC mandate. And for 10 years, since the mandate was rescinded, carriers have continued to receive reimbursement. That made sense in light of the need for robust build-out efforts. But today the most urgent needs are those of the districts. There is a lot of support for the idea of reallocating these funds now that the build-out push has slowed.”
The TECB was created by the General Assembly in 1998 to assist ECDs’ boards of directors in the areas of management, operations and accountability, with the goal of establishing reliable emergency communications for all citizens of the state. It’s a successful formula; in 2005, Tennessee became the third state in the nation to become Phase II-ready, meaning a 911 operator can obtain a wireless caller’s number and location information. In 2005, Tennessee received an award from the Congressional E911 Institute for having the nation’s best state system.
To remain a leader in 911, Tennessee will soon embark on its Next Generation 911 project, which will digitalize the state’s aging analog 911 system. That system is inadequate to handle emerging technologies. Eliminating Cost Recovery could provide needed revenue as the Board moves forward with this cutting-edge effort.
The TECB is administratively attached to the Department of Commerce and Insurance, which works to protect consumers while ensuring fair competition for industries and professionals who do business in Tennessee. www.tn.gov/commerce/