How To File the FCC Form 499-A - Universal Service Administrative

Transcription

How To File the
FCC Form 499-A
March 2013
Title: How to File the FCC Form 499-A
Completing the 2013
FCC Form 499-A
Who must file the FCC Form 499-A?
Instructions pgs. 2-3

ALL intrastate, interstate, and international providers of telecommunications in the United
States, with very limited exceptions, must file the FCC Form 499-A.

“Telecommunications” as defined by the FCC for purposes of the FCC Form 499-A is the
transmission, between or among points specified by the user, of information of the user’s
choosing, without change in the form or content of the information as sent and received.
NOTE: It is important to understand the overall customers of the services and what type of
services they offer. If the overall use of a product is defined as telecommunications, then all
of the components of that product are telecommunications.
3
Who is exempt from direct contributions?

Government, Broadcasters, Schools and Libraries
– Government entities that purchase telecommunications services in bulk on behalf of themselves
(e.g., state networks for schools and libraries) are not required to file or contribute directly to
universal service.

System Integrators and Self-Providers
– Systems integrators that derive less than 5% of their system integration revenues from the resale of
telecommunications are not required to file or contribute directly to universal service.
– Entities that provide services only to themselves or to commonly-owned affiliates need not file.

De Minimis companies must file!
– All interconnected VoIP and telecom carriers are not required to contribute directly to the universal
service support mechanisms for a given year if their contribution for that year is less than $10,000,
however they must file the FCC Form 499-A regardless.
NOTE: For USF-purposes, non-contributors must be treated as end users by their underlying carriers and
therefore, they may end up contributing indirectly as a result of USF pass-through surcharges.
4
Who is exempt from contributing?
Customers Who Are Exempt

Lifeline Program Customers – Companies cannot collect USF fees from a Lifeline Program
participant on any services supported by universal service.
(http://www.fcc.gov/cgb/consumerfacts/lllu.pdf)

Military Deployed Outside the US – Companies cannot charge universal service and TRS
fees to calls placed by Armed Forces personnel stationed or deployed outside the United
States to their families or friends at home. (In the Matter of Implementation of Call Home
Act of 2006, WC Docket 07-2, Order, FCC 07-2, 22 FCC Rcd 1020 (2007).
All other U.S. customers may be subject to USF directly or indirectly by way of pass-through
surcharges from their carrier.
5
Reporting after a Sale or Merger
Instructions pg. 14
 When two filers merge, the successor company should report total revenues for
the reporting period for all predecessor operations, unless the filers maintain
separate corporate identities and both continue to operate. In that special case,
each filer should continue to report its revenues separately. Where an entity
obtains, by any means whatsoever, the telecommunications operations or
customer base of a filer, and the acquired company does not file its own FCC Form
499-A, the acquiring company must report all telecommunications revenues
associated with such operations or customer base including revenues billed in the
calendar year prior to the date of acquisition.
 USAC will use the combined FCC Form 499Q revenues of both companies when
calculating the purchasing company’s FCC Form 499-A True Up.
6
Recordkeeping
Instructions pg. 8
Filers shall maintain records and documentation to justify information
reporting on the Worksheet, including the methodology used to determine
projections and to allocate interstate revenues, for five years. Additionally,
filers must make available all documents and records that pertain to them,
including those of contractors and consultants working on their behalf, to the
Commission’s Office of Inspector General, to the Universal Service
Administrative Company (USAC), and to auditors upon request. Review by the
Commission or USAC may cover any existing corporate records, not just those
specifically maintained for these purposes. Entities acquiring carrier
operations through consolidation, merger, etc., must maintain the records of
the acquired entity.
7
Block 1: Key Fields
Instructions pg. 9

Line 101 – Filer Identification Information
Enter the “Filer 499 ID” number for the filer, which is assigned by USAC after a company files
its first FCC Form 499-A. This code should be entered at the top of each page on the paper
version of the Worksheet, the cover letter, and on any supporting documentation. Filer 499
ID numbers can be found at:
– FCC Form 499 Filer Database (http://fjallfoss.fcc.gov/cgb/form499/499a.cfm)
– Telecommunications Provider Locator (http://fcc.gov/wcb/iatd/lec.html)
First time filers should write “New” in the block. New filers will be assigned a Filer 499 ID
number after submitting a completed Worksheet.

Line 103 - Employer Identification Number (EIN)
Enter the Internal Revenue Service (IRS) employer identification number (EIN) for the filer,
which should be the same EIN that the company uses to file any federal taxes, if the filer
offers services subject to such taxes. The EIN is the entity’s taxpayer identification number
(TIN) or an individual’s social security number (SSN). Consolidated filers must provide the EIN
of the holding company.
8
Block 1: Key Fields
Instructions pg. 10 & Appendix B

Line 105 – Telecommunications Activity or Activities of the Filer
Mark the boxes that describe the telecommunications activity or activities of the filer. If more than one is
appropriate, label the activities in order of importance to the filer’s business. Enter a 1 in the box that is
the most important activity, a 2 in the next most important, etc., but select no more than 5 categories. An
explanation of the categories appears in Appendix B.
CAP/CLEC (Competitive Access Provider/Competitive Local Exchange Carrier). Competes with incumbent
local exchange carriers (ILECs) to provide local exchange services, or telecommunications services that link
customers with interexchange facilities, local exchange networks, or other customers, other than Coaxial
Cable providers.
Common FCC Form 499-A Reporting Lines – 304.1, 404.1, 404.2, 404.3, 405, & 406
Cellular/PCS/SMR (Cellular, Personal Communications Service, and Specialized
Mobile Radio). Specialized Mobile Radio - telephone service provider) -- primarily provides
wireless telecommunications services (wireless telephony). This category includes all providers of
real-time two-way switched voice services that interconnect with the public switched network,
including providers of prepaid phones and public coast stations interconnected with the public
switched network. This category includes the provision of wireless telephony by resale. An SMR
provider would select this category if it primarily provides wireless telephony rather than dispatch
or other mobile services.
Common FCC Form 499-A Reporting Lines – 309, 409, 410 & 414.1
9
Block 1: Key Fields
Coaxial Cable. — Uses coaxial cable (cable TV) facilities to provide local exchange services or
telecommunications services that link customers with interexchange facilities, local exchange networks, or
other customers.
Common FCC Form 499-A Reporting Lines 304.1, 404, & 405
ILEC (Incumbent Local Exchange Carrier). — Provides local exchange service. An incumbent LEC or ILEC
generally is a carrier that was at one time franchised as a monopoly service provider or has since been
found to be an incumbent LEC. See 47 U.S.C. § 251(h).
Common FCC Form 499-A Reporting Lines 304.1, 404.1, 404.2, 404.3, 405, & 406
IXC (Interexchange Carrier). — Provides long distance telecommunications services substantially through
switches or circuits that it owns or leases.
Common FCC Form 499-A Reporting Lines 311, 312, 414.1, & 415
Interconnected VoIP Provider. — Provides “interconnected VoIP service,” which is a service that (1)
enables real-time, two-way voice communications; (2) requires a broadband connection from the user’s
location; (3) requires Internet protocol-compatible customer premises equipment (CPE); and (4) permits
users generally to receive calls that originate on the public switched telephone network and to terminate
calls to the public switched telephone network.
Common FCC Form 499-A Reporting Lines 304.1, 404.4, 404.5, & 414.2
10
Block 1: Key Fields
Local Reseller. — Provides local exchange or fixed telecommunications services by reselling services of
other carriers.
Common FCC Form 499-A Reporting Lines 404.1, 404.2, 404.3, 405, & 406
Non-Interconnected VoIP Provider. — Provides non-interconnected VoIP service, which is a service that
(i) enables real-time voice communications that originate from or terminate to the user’s location using
Internet protocol or any successor protocol and (ii) requires Internet protocol compatible customer
premises equipment, but (iii) is not an interconnected VoIP service.
Common FCC Form 499-A Reporting Lines 418.4
Operator Service Provider (OSP). — Serves customers needing the assistance of an operator to complete
calls, or needing alternate billing arrangements such as collect calling.
Common FCC Form 499-A Reporting Line 413
Paging and Messaging. — Provides wireless paging or wireless messaging services. This category includes
the provision of paging and messaging services by resale.
Payphone Service Provider. — Provides customers access to telephone networks through payphone
equipment, special teleconference rooms, etc. Payphone service providers also are referred to as
payphone aggregators.
Common FCC Form 499-A Reporting Lines 306 & 407
11
Block 1: Key Fields
Prepaid Calling Card Provider. — Provides prepaid calling card services by selling prepaid calling cards to
the public, to distributors or to retailers. Prepaid card providers provide consumers the ability to place
long distance calls without presubscribing to an interexchange carrier or using a credit card. Prepaid card
providers typically resell the toll service of other carriers and determine the price of the service by setting
the price of the card, assigning personal identification numbers (PINs) and controlling the number of
minutes that the card can be used for. Companies who simply sell cards created by others are marketing
agents and do not file.
Private Service Provider. — Offers telecommunications to others for a fee on a non-common carrier basis.
This would include a company that offers excess capacity on a private system that it uses primarily for
internal purposes. This category does not include SMR or Satellite Service Providers.
Common FCC Form 499-A Reporting Lines 305, 312, 406, & 415
Satellite Service Provider. — Provides satellite space segment or earth stations that are used for
telecommunications service.
Common FCC Form 499-A Reporting Lines 313 & 416
12
Block 1: Key Fields
Shared-Tenant Service Provider /Building LEC. — Manages or owns a multi-tenant location that provides
telecommunications services or facilities to the tenants for a fee.
Common FCC Form 499-A Reporting Lines 404.1, 404.2, 404.3, 405, & 406
SMR (dispatch) (Specialized Mobile Radio Service Provider). — Primarily provides dispatch services and
mobile services other than wireless telephony. While dispatch services may include interconnection with
the public switched network, this category does not include carriers that primarily offer wireless
telephony. This category includes LTR dispatch or community repeater systems.
Common Reporting FCC Form 499-A Line 409
Stand-Alone Audio Bridging Provider /Integrated Teleconferencing Service Provider. — Allows end users
to transmit a call (using telephone lines), to a point specified by the user (the conference bridge), without
change in the form or content of the information as sent and received (voice transmission).
13
Block 1: Key Fields
Toll Reseller. — Provides long distance telecommunications services primarily by reselling the long
distance telecommunications services of other carriers.
Common FCC Form 499-A Reporting Lines 414.1 & 415
Wireless Data. — Provides mobile or fixed wireless data services using wireless technology. This category
includes the provision of wireless data services by resale.
Common FCC Form 499-A Reporting Lines 305, 312, 406, & 415
14
Block 1: Key Fields
Instructions pg. 10

Line 107 - FCC Registration Number (FRN), also known as CORES ID
The FRN is a ten-digit number that includes a check-digit and is used to identify an entity
within all Commission Licensing/Filing systems and the Commission’s Revenue Accounting
Management Information System (RAMIS). The number is assigned by the Commission
Registration System (CORES). For more information, see
https://fjallfoss.fcc.gov/coresWeb/publicHome.do.
ALL FILERS MUST LIST THEIR FRNs ON THE
FCC FORM 499-A!!!
15
Block 2-A: Key Fields

Lines 203–206 - List person who completed this worksheet
– First and Last name
– Telephone, Fax and Email (non-generic)*

Line 208 - Billing address and contact person
– Invoices for TRS, NANPA, LNP & USF will be sent to this address
– Need billing contact first and last name
– If a contributor wishes invoices for the various programs to be sent to different
addresses or contacts, a written request is required (Alternative Billing Contact Sheet)

Line 208.1 – Email address where ITSP regulatory fee bill should be sent
*Upon completion of the FCC Form 499-A, the E-File system will automatically create an
E-File user account for the preparer. USAC will only create accounts for user specific email addresses.
16
Block 2-B: Key Fields
Instructions pg. 11

Lines 209-218 - D.C. Agent For Service of Process per 47 U.S.C. § 413
– Every common carrier, interconnected VoIP provider, and non-interconnected VoIP
provider with interstate end-user revenues subject to TRS contributions, that is subject
to the Act “shall designate an agent in the District of Columbia” for service of process.
47 C.F.R. Section 413; see 47 C.F.R. Section 1.47(h).
– There are no requirements that an agent for service of process be a law firm or agency
business. It can be any person that has agreed to serve as the agent. The preferred
agent could, for example, be a specific individual employed by the company.
NOTE: Carriers must notify the FCC within one week if their DC or alternate agent changes.
17
Block 3 & 4: Gross Billed Revenue

Gross billed revenues consist of total revenues billed to customers during the filing period
with no allowances for uncollectibles, settlements, or out-of-period adjustments.

Revenue is reported on Lines 303–314 and 403–418

Companies must break out the revenue in three ways.
– Assign gross billed revenues to reporting categories, which includes allocating revenues
from bundled services between telecommunications and non-telecommunications
components.
– Attribute telecommunications revenues derived from sales to contributing resellers
(carrier’s carrier, Block 3) or from sales to end users (end user, Block 4).
– Apportion telecommunications revenues between the intrastate, interstate, and
international jurisdictions.
18
Block 3 & 4: Assigning Revenue
Instructions pg. 14



The FCC Form 499-A requires revenue categorized as fixed local, mobile, toll services, or
other.
If revenue category breakout cannot be determined directly from corporate books of
account or subsidiary records, filers may provide on the Worksheet a good-faith estimate of
the breakout. Good-faith estimates should be based on information that is current for the
filing period.
Later in the presentation, we will review these specific types of revenue and highlight their
appropriate placement on the FCC Form 499-A.
– Fixed Local
– Originating & Terminating Traffic
– Private Line
– Payphone
– Mobile
– Interconnected VoIP
– USF surcharges & support
– Prepaid
– Long Distance
– Non-telecommunications
19
Block 3 & 4: Attributing Revenue

Reseller revenue is defined by the instructions as revenue from a customer that:
–
–

Each filer should have documented procedures to ensure that it reports as “revenues from
resellers” in Block 3 only revenues from entities that reasonably would be expected to
contribute to support universal service. The procedures should include:
–
–
–

(1) incorporates purchased telecommunications services into its own telecommunications offerings;
and
(2) can reasonably be expected to contribute to federal universal service support mechanisms based
on revenues from such offerings when provided to end users.
Maintaining the following information on resellers: Filer 499 ID; legal name; address; name of a
contact person; phone number of the contact person
Annual certification by the reseller
Pursuant to the November 2012 Wholesaler-Reseller Clarification Order, providers may
demonstrate a reasonable expectation through December 31, 2013, that particular customers
were resellers by relying on certificates that are consistent with the sample language included in
the 2012 FCC Form 499-A instructions.
Revenue that does not qualify for this category is End User, reportable in Block 4.
NOTE: If the reseller company that a wholesale company is billing qualifies for the USF de minimis exemption, the revenue
received from this reseller must be treated as end-user, and be reported in Block 4 by the wholesaler. The company may
also deduct this revenue from their TRS, NANPA & LNP contribution base by reporting these amounts on Line 511.
20
Block 3 & 4: Apportioning Revenues

Column (a) = Intrastate Revenue + Column (d) + Column (e)
– Intrastate is not explicitly reported on the 499A
– Column (d) is interstate, and Column (e) is international

Jurisdiction is based upon traffic or simply the originating and terminating points of the final
product.
– If John Smith makes a phone call from Maryland to California that call and all of the
components of that call are interstate.

Revenues from services offered under interstate tariffs, such as revenues from federal
subscriber line charges and from federally tariffed LNP surcharges, should be identified as
interstate revenues.

Where possible, filers should report their amount of total revenues that are interstate and
international by using information from their books of account and other internal data
reporting systems.

Good Faith Estimates - If interstate and international revenues cannot be determined
directly from corporate books of account or subsidiary records, filers may provide on the
Worksheet good-faith estimates of these figures.
– Most common good faith estimates are based on traffic reports.
21
Fixed Local – Carrier’s Carrier
Wholesale Local Revenues
303.1 – Monthly service, local calling, connection
charges, and other local exchange service
303.2 – Local Resale includes PICC charges imposed on
carriers
*Do not report any revenue here if you do not have the
Filer ID and a current reseller certification for your
customer- See Fixed Local- End User.
22
Fixed Local – End User
Line 404 — Monthly service, local calling, including message and local toll charges, connection charges,
vertical features, and other local exchange services should include the basic local service revenues except
for local private line revenues, special access revenues, and revenues from providing mobile or cellular
services. These lines should include charges for optional extended area
service, dialing features, local directory assistance, added exchange services such as automatic number
identification (ANI) or teleconferencing, LNP surcharges and connection charges.
Line 404.1 & 404.2 — Revenues from Local/Long Distance
Bundle Plans. (ex. $50 for unlimited US Calling)
Line 404.3 — Revenues from Local Only Plans
Line 405 should include charges to end users specified in access tariffs, such as
tariffed subscriber line charges and PICC charges levied by a local exchange
carrier on customers that are not presubscribed to an interexchange carrier
(i.e., a no-PIC customer). Line 405 should also include access recovery charges
(ARCs).
23
Fixed Local Interstate Breakout
The federal subscriber line charges (Line 405) typically represent the interstate portion of fixed local
exchange service; these amounts are separate from toll revenues and correspond to the revenues received
by incumbent telephone companies to recover part of the cost of networks that allow customers to
originate and terminate interstate calls.
NOTE: Language deleted from FCC Form 499-A instructions for Line 404. Non-ILECs such as CLECs
are NOT required under FCC rule or order to charge a SLC to customers.
24
Originating & Terminating Traffic
Instructions pg. 15
Line 304 should include per–minute charges for
originating or terminating calls, such as CABS revenue
and Inter-carrier Compensation.
*Do not include international settlement or
settlement-like receipts or transiting fees from
international toll services- Use Line 418.
NOTE: Report gross revenues and do not deduct or net payments to carriers for origination or
termination of traffic on their networks.
25
Private Line – Carrier’s Carrier
Instructions pgs. 16 & 19
Private line and special access service should include
revenues from providing local services that involve
dedicated circuits, private switching arrangements, digital
subscriber lines, and/or predefined transmission paths. (ex.
T1, Frame Relay, and Private lines)
Line 305 Local Private Line Service (with both A & Z
locations within the basic local service area.)
Line 312 LD Private Line Service (with A & Z locations in
different basic local service areas.)
customer- See Private Line- End User.
NOTE: The revenues from special access lines bundled with and charged as part of a toll service should
be reported on the appropriate toll service line.
26
Private Line – End User
Private line and special access service should include
revenues from providing local services that involve
dedicated circuits, private switching arrangements, digital
subscriber lines, and/or predefined transmission paths. (ex.
T1, Frame Relay, and Private lines)
Line 406 Local Private Line Service (with both A & Z
locations within the basic local service area.). Line 406
includes all revenue from broadband service (including
the transmission component of wireline broadband
Internet access service) provided on a common carrier
basis.
Line 415 LD Private Line Service (with A & Z locations in
different basic local service areas.)
NOTE: If over 10% of the traffic carried over a private or WATS line is interstate, then all the revenue for that private
line must be reported as 100% interstate. The best way to determine how a private line should be treated would be
through a customer certification regarding the nature of the traffic carried over the private line. (MTS and WATS Market
Structure, Amendment of Part 36 of the Commission’s Rules and Establishment of a Joint Board, CC Dockets Nos. 78-72 and 80-286, Recommended Decision and
Order, 4 FCC Rcd 1352 (¶ 3,7) (1989).
The FCC has defined Internet traffic to carry more than 10% interstate.
27
Payphone
Instructions pg. 16
Line 306 should include revenues
received from carriers as payphone
compensation for originating toll calls.
(ex. dial-around)
Line 407 should include revenues received from
customers paid directly to the payphone service
provider, including all coin-in-the-box revenues. Do not
deduct commission payments to premises’ owners.
NOTE: A good way to determine the interstate revenue amount is by looking at the phone
bills from your underlying carrier for your pay phones. The interstate revenue reported on
line 407 generally is under 20%.
28
Mobile Service
Line 309 — Revenues for all mobile service provided to
contributing resellers, including revenues received from
another carrier for roaming service provided to customers
of that carrier. *Except for roaming revenues do not report
any revenue here if you do not have the Filer ID and a
current reseller certification for your customer- See Block
4 Lines below.
Line 410 — Revenues for mobile service provided to end
users, including message charges, any
roaming charges assessed on customers and local
directory assistance charges.
Line 409 — Revenues for mobile service provided to
end users, including monthly charges, activation fees,
service restoration, and service order processing
charges, etc.
Itemized toll charges to mobile service customers should be
included on the Lines 413 or 414, as
appropriate.
The FCC provides the following safe harbor percentages of interstate revenues associated with Line 309, Line 409,
and Line 410: 37.1% of cellular and broadband PCS telecommunications revenues, 12.0% of paging revenues, and
1.0% of analog SMR dispatch revenues
29
Interconnected VoIP
Instructions pgs. 14-15, 18-19, & 24
Line 303 — Wholesale VoIP Revenues
customer- See Block 4 Lines below.
Line 404.4 — Revenues from Local service provided via
interconnected VoIP service offered in
conjunction with a broadband connection.
Line 404.5 — Revenues from Local service provided via
interconnected VoIP service offered
independent of the broadband connection.
*Revenue from bundled local/long distance plans should
be reported here
Line 414.2 — Separately billed revenue for
ordinary long distance provided to end users
using interconnected VoIP.
The FCC provides a 64.9% safe harbor percentage of
interstate revenues for interconnected VoIP telecom
associated with Line 303.2, Line 404.4, Line 404.5, and Line
414.2. Interconnected VoIP providers not reporting based on
the safe harbor must make a similar allocation as well as
determine the appropriate portion of revenues to allocate to
interstate and international toll service.
30
Use of Safe Harbors

Safe harbor percentages may not be applied to universal service pass-through charges, fixed
local, and itemized toll charges.

Wireless telecommunications providers, interconnected VoIP providers, and noninterconnected VoIP providers that choose to avail themselves of these safe harbor
percentages for interstate revenues may assume that the FCC will not find it necessary to
review or question the data underlying their reported percentages.

All affiliated wireless telecommunications providers and interconnected VoIP providers
(including interconnected and non-interconnected) must make a single election, each
quarter, whether to report actual revenues or to use the current safe harbor within the same
safe harbor category.

Annual revenues reported on the FCC Form 499-A should reflect the filer’s reporting of
revenues in each quarter on FCC Form 499-Q.
31
Universal Service Support
Instructions pg. 19
Line 308 — Universal service support revenues should
include all amounts that filers receive as universal service
support from either states or the federal government.
Includes revenues received as cash or as a credit against
contributions.
*Do not include charges or credits for subsidized services
provided to schools, libraries, and rural health care
providers. Such charges are properly reported as end user
revenue.
32
USF Surcharges
Instructions pg. 19
403 – Itemized charges levied by the reporting entity in order to recover
contributions to state and federal universal service support mechanisms
should be classified as end-user billed revenue.
NOTE: If the surcharge reported on line 403 is to recover
federal USF costs, the federal figure should be reported as
either interstate or international, as appropriate.
33
Prepaid Calling Cards
Line 411 — Revenues from prepaid calling cards
provided either to customers, distributors or to
retail establishments. Prepaid card includes
prepaid service where the customer utilizes the
service provider’s switching platform and a
personal identification number (PIN) for purposes
of verification and billing, even if the customer
does not receive a physical card.
NOTE: Gross billed revenues should represent the amounts actually paid by end user customers and not the
amounts paid by distributors or retailers, and should not be reduced or adjusted for discounts provided to
distributors or retail establishments. For purposes of completing this Worksheet, prepaid card revenues
should be recognized when end–user customers purchase the cards. The most common way is to recognize
revenue when the card is activated.
34
Long Distance
Line 311, Line 412, and Line 414 — Filers should report ordinary long distance revenues on these lines,
including revenues from most toll calls placed for a fee and flat monthly charges billed to customers, such as
account maintenance charges, PICC pass-through charges, and monthly minimums.
Line 311 — Ordinary long distance provided to
contributing resellers. *Do not report revenue here if
you do not have a Filer ID and current reseller
certification for your customer. See Block 4 Lines
below.
Line 414.1 — Ordinary long distance provided to end
users using non-interconnected VoIP technologies,
including toll service that employs Internet Protocol
but that is not provided on an interconnected VoIP
basis.
NOTE: Telecommunications providers should report
international settlement revenues from traditional
settlement transiting traffic on Line 418 of the Worksheet.
Line 414.2 — Separately billed revenue for ordinary
long distance provided to end users using
interconnected VoIP.
35
Other Long Distance
Line 413 — Operator and toll calls with alternative
billing arrangements should include all
calling card or credit card calls, person-to-person calls,
and calls with alternative billing arrangements such as
third–number billing, collect calls, and country-direct
type calls that either originate or terminate charges in
a US point. These lines should include all charges
from toll or long distance directory assistance.
Line 416 — Satellite services should contain revenues
from providing space segment service and earth
station link-up capacity used for providing
telecommunications or telecommunications services
via satellite.
Line 417 — should include toll teleconferencing.
The associated carrier’s carrier revenue lines for this revenue category are 310, 313, and 314.
*Do not report any revenue here if you do not have the Filer ID and a current reseller certification for your
customer- See Block 400 Lines above.
36
Non-Telecommunications
Instructions pg. 20

What is Non-Telecommunications Revenue?
– Revenues that are not derived from telecommunications (i.e., rent or sale of
equipment)
– Revenues that are derived from telecommunications related functions, but should not
be included in the universal service or other fund contribution bases

A listing of non-telecommunications examples is available in the instructions.
Line 418.4 —The new line items for the non-interconnected VOIP,
this is the only 418 line items that required the interstate and
international percentage
37
End User Summary Totals
Instructions pg. 25
Line 419 – Gross billed revenues from all sources [Lines
303 through 314 plus Lines 403 through 418]
Line 420 – Gross universal service contribution base
amounts [Lines 403 through 411 plus Lines 413 through
417]
NOTE: NANP & LNP all use the gross universal service contribution base amounts reported on line 420 to
calculate their filer contributions.
NANP - Line 420(a) + Line 412(a) – Line 511(a)
LNP - (Line 420(a) + Line 412(a) – Line 511(a)) * % of end-user revenues shown on Lines
503 through 509
38
Bad Debt
Line 421 — Show the uncollectible revenue/bad debt
expense associated with gross billed revenues amounts
reported on Line 419. In addition, for those using billed
revenues, this line may include
redeemed credits.
Line 422 — Show the portion of the uncollectible
revenue/bad debt expense reported on Line 421 that is
associated with just the universal service contribution
base amounts reported on Line 420.
Line 423 Net universal service contribution base
revenues [Line 420 minus line 422]
Filers that maintain separate detail of uncollectibles by
type of business should rely on those records in
determining the portion of gross uncollectibles reported
on Line 421 that should be reported on Line 422. Filers
that do not have such detail should make such
assignments in proportion to reported gross revenues.
NOTE: USAC will use the revenues on Line 423 (d+e) for the FCC Form 499-A/Q True-Up
39
Block 5: Additional Revenue Breakouts
Line 512:— Gross TRS Contribution Base (calculated field). The totals
on this line represent gross end-user revenues for the purpose of
determining contributions to TRS.
Line 513:—Uncollectible revenue/bad debt expense associated with
TRS contribution base amounts shown on Line 512. Show the portion
of the uncollectible revenue/bad debt expense reported on Line 421
that is associated with just the TRS contribution base amounts
reported on Line 512. Filers that maintain separate detail of
uncollectibles by type of business should rely on those records in
determining the portion of gross uncollectibles reported on Line 421
that should be reported on Line 513. Filers that do not have such
detail should make such assignments in proportion to reported gross
revenues. Filers must be able to document how the amounts reported
on Line 513 relate to the uncollectible revenue/bad debt expense
associated with gross billed revenues reported on Line 421.
NOTE: TRS will use the Net TRS Contribution Base Revenues on Line
514(b) to calculate its filer contributions.
Line 514: – Net TRS contribution base revenues (calculated field). Net
TRS contribution base revenues should equal the amounts reported
on Line 512 less the amounts reported on Line 513.
40
Officer Certification
 An officer of the company must certify to the accuracy of the FCC Form 499-A reporting.
 The e-mail address may not be generic. USAC will establish an E-file account for the
officer using the e-mail address, so that future filings may be certified online.
41
2013 FCC Forms 499-A/Q
True-Up Process
2013 FCC Forms 499-A/Q True-Up Process
Example - 499 Filings
Interstate Revenue
(Line 423D)
2013 499A
$2,377,064
International Revenue
(Line 423E)
+
Interstate Revenue
(Line 120B)
$19,218
Contribution Base
=
International Revenue
(Line 120C)
$2,396,282
Contribution Base
Nov 11 499Q
$621,080
+
$7,495
=
$628,575
Feb 12 499Q
$603,005
+
$4,978
=
$607,983
May 12 499Q
$623,264
+
$4,627
=
$627,891
Aug 12 499Q
$639,772
+
$4,211
=
$643,983
$2,487,121
+
$21,311
=
$2,508,432
2012 499Q Contribution Base
2012 Avg. Contribution & Circularity Factors
Avg. of 2 highest FCC contribution Factors
.176500
Avg. of 2 lowest FCC Contribution Factors
.165500
Avg. of 2 FCC Circularity Factors associated with 2 high FCC Contribution Factors
.152062
Avg. of 2 FCC Circularity Factors associated with 2 low FCC Contribution Factors
.144271
Avg. of all FCC Contribution Factors
.171000
Avg. of all FCC Circularity Factors
.148166
43
Step 1
 The first step in the FCC Forms 499 A/Q True-Up process is to determine whether a company
is de minimis for purposes of the FCC Forms 499 A/Q True-Up using the following formula:
(499A * .171000) – (499A * .171000*.148166)
– If the result is < $10,000, then the contributor is de minimis, and the January- December
2012 support mechanism charges will be reversed on the contributor’s July 2013
invoice.
– If the result is > or = $10,000, then the contributor is NOT de minimis; continue to step
2.
Example:
($2,396,282 * .171000) – ($2,396,282 * .171000 *.148166) = $348,905.43
$348,905.43 > $10,000
NOTE: For Calendar Year 2012, Interstate
Revenues greater than $68,651.00 are
not de minimis.
Not De Minimis
44
Step 2
 The next step in the FCC Forms 499 A/Q True-Up process is determining which FCC
contribution factor, and associated FCC Circularity factor to use in the True-Up calculation.
After determining which factor is applicable, it will be used to replace the “Average FCC
Contribution Factor” in step 3.
– Average of 2 highest FCC Contribution Factors and the associated average FCC
Circularity Factor should be used if (499A) > (Q1 + Q2 + Q3 + Q4).
– Average of 2 lowest FCC Contribution Factors and the associated average FCC Circularity
Factor should be used if (499A) < (Q1 + Q2 + Q3 + Q4).
– Average of all 4 FCC Contribution Factors and the associated average FCC Circularity
Factor should be used if (499A) = (Q1 + Q2 + Q3 + Q4).
Example:
($2,396,282) < ($628,575 + $607,983 + $627,891 + $643,983)
Average of 2 lowest FCC Contribution Factors and the associated average
FCC Circularity Factor should be used.
45
Step 3
 Using the inputs noted on slide 33, the FCC Forms 499 A/Q True Up formula for calculating
necessary federal Universal Service Support Mechanism Credits or Adjustments is:
 (499A) - (Q1 + Q2 + Q3 + Q4) = True Up Base
(True Up Base * Average FCC Contribution Factor) – (True Up Base * Average FCC
Contribution Factor * Average FCC Circularity Factor) = Quarterly Credit or Adjustment
Quarterly Credit or Adjustment / 3 = Monthly Credit or Adjustment
Example:
($2,396,282) - ($628,575 + $607,983 + $627,891 + $643,983) = -$112,150
(-$112,150 * .165500) - (-$112,150 * .165500 * .144271) = -$15,883.04
-$15,883.04 / 3 = -$5294.35
The company will receive three equal credits of -$5294.35 on its
July – September 2013 Invoices.
46
For support, or more information:
USAC Customer Operations
(888) 641-8722
CustomerSupport@usac.org
form499@usac.org
47

How To File the FCC Form 499-A - Universal Service Administrative

Transcription

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