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The Federal Communications Commission (FCC) requires
certain carriers, including wireline, wireless and now
VOIP to contribute to a fund that is used to subsidize
the construction of telephone and broadband services
in rural communities and for schools and libraries.
This fund is called the Universal Service Fund. The
carriers contribute to the fund by paying a mandatory
surcharge on revenues and are allowed to pass that surcharge
on to their customers. The current surcharge is just
over 10%.
How and when do I pay the USF surcharge?
The Universal Service Administrative Company (USAC)
administers the Universal Service Fund. Carriers are
required to file a partial form 499A to register with
USAC. Then carriers must file a 499Q every quarter to
estimate revenues, and a 499A every year to true-up
to actual revenues. Bills are sent by USAC based on
the 499Q and 499A filings.
Do I need a lawyer to file the 499A?
Mr. Lynch is familiar with the rules and regulations
that govern the 499A and 499Q filings and can advise
you as to how revenue should be classified. This is
particularly important for prepaid, calling card and
VOIP carriers. Also, for some international carriers,
or carriers with limited revenue related to the Universal
Service Fund requirements, Mr. Lynch can obtain a waiver
of certain filing requirements or help to eliminate
the USF surcharge completely. It is not expensive to
have Mr. Lynch review your filing and process it with
USAC, and it may save you much money in the long run.
I provide Voice over IP services (VOIP), do I need
to file the 499A with USAC?
On June 21, 2006, the FCC decided that VOIP providers
that are interconnected to the public switched telephone
network must contribute to the Universal Service Fund.
The final rules should be released soon to identify
the level of contribution and the permitted methods
for calculating it. Click here
for the FCC's press release.
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