Trainings & Outreach

HCLI News – April 2012

Compliance Revenue Reporting Did You Know?

Deadlines Your Feedback

DUE	COMPONENT	DATA
June 30	ICLS	Revisions to projected revenue data for upcoming program year, filed March 31. Learn More...
June 30	ICLS	Revisions to projected data for the ending ICLS program year. Learn More...

 

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Future High Cost Filing Requirements

High Cost Program

USAC issues the following filing requirement reminders based on the compliance requirements (formerly found in Sections 54.209 and now in 54.313) as discussed in the FCC Connect America Fund Clarification Order (DA-12-147):

1. Most of these new reporting requirements are not effective until Federal Register publication of approval by the Office of Management and Budget under the Paperwork Reduction Act (PRA). That approval is still in process. The FCC will provide impacted eligible telecommunications carriers (ETCs) sufficient time after PRA approval is obtained to file the relevant information.
2. ETCs that have been designated by a state commission should continue to comply with state requirements regarding service improvement plans.
3. The requirement to file a new five-year build-out plan only applies to ETCs that receive high-cost support and are subject to new broadband public interest obligations.
4. Section 54.313(a)(2)-(6) require ETCs annually to file information concerning outages, unfulfilled service requests, and complaints, among other things. 
   1. If state-designated ETCs did not collect Section 54.313(a)(2)-(6) type information during 2011, then they are not expected to report it to the FCC in 2012.  
   2. If state-designated ETCs are subject to a state requirement to report some or all of this information annually to the state, then they should file a copy of any relevant information with the FCC in 2012, after PRA approval is received. 
   3. The FCC will provide impacted ETCs sufficient time after PRA approval is obtained to file the relevant information.
5. Incumbent local exchange carrier recipients of high-cost support must file all of their flat rates for residential local service, as well as state fees as defined pursuant to Section 54.318(e), after PRA approval is received.
6. Presently, the requirement for high-cost recipients to annually report ownership information has no required filing date. The FCC will provide affected ETCs sufficient time after PRA approval is obtained to file the required information.
7. The financial reporting requirements for privately held rate-of-return carriers required reporting will not be effective until PRA approval is received, the FCC will provide sufficient time once PRA approval is obtained for affected ETCs to comply with this requirement.
8. The order eliminated the requirement that incumbent ETCs and competitive ETCs, except those serving remote areas of Alaska and Standing Rock Telecom, file quarterly line counts pursuant to Section 54.903(a)(2). Carriers may continue to file voluntary updates of line counts.
9. Several petitions for reconsideration on these reporting requirements were filed and are under consideration by the FCC.

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Reminder to CETCs: No More Filings Required but True-Ups Still Possible

High Cost Program

For competitive eligible telecommunications carriers (CETCs), the March 30, 2012 line count filing for Interstate Access Support (IAS) was the last filing required under the new FCC rules. There is an exception for delayed phase-down CETCs in Alaska and Standing Rock Telecom.

High Cost support for price cap (and rate-of-return affiliates) and CETCs was frozen effective January 1, 2012, based on the January 31, 2012 view of their 2011 support. CETCs and incumbent carriers can still file revisions to previously filed data and make true-up filings for IAS and other legacy high cost components.

If you have any questions, contact USAC Customer Operations via email or by calling (877) 877-4925.

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Frequently Asked Questions (FAQs) about Filing FCC Form 497

Lifeline Program

On February 6, 2012, the Federal Communications Commission (FCC) released its Lifeline Reform Order (FCC 12-11), which makes significant changes to the federal Low Income Program. Several significant changes went into effect April 2, 2012, but a few will be delayed, including the transition to the $9.25 flat-rate from the current tier-based reimbursement structure. These FAQs are designed to answer questions eligible telecommunications carriers (ETCs) may have about filing FCC Form 497. These FAQs will be updated as more information becomes available.

Q. When will carriers transition to the new $9.25 rate?
A. On March 29th, the FCC released a public notice (DA 12-493) informing carriers that the new $9.25 flat rate will not be effective until the Office of Management and Budget (OMB) approves the information collection requirements related to the $9.25 rate and the Commission publishes a subsequent notice in the Federal Register setting the effective date. Following approval by the OMB, the Commission will publish a notice in the Federal Register setting the date by which ETCs must come into compliance with the $9.25 flat rate. This date will be no sooner than 90 days after the notice is published.

Q. Will there be a new version of FCC Form 497?
A. Yes. FCC Form 497 will be modified to reflect the new rules and requirements established in the Lifeline Reform Order.

Q. When will the revised FCC Form 497 be available?
A. Approval for the new version of FCC Form 497 is pending with the OMB which is responsible for approving all government forms that collect data. The FCC has requested expedited approval of FCC Form 497. Approval will occur sometime after April 5.

Q. How will ETCs know when the new FCC Form 497 is available?
A. USAC will post the revised FCC Form 497 on USAC's website as soon as it is available. USAC will also send the form via email to ETCs' existing FCC Form 497 contacts (please make sure your company's FCC Form 497 has the correct contact person and email address). USAC will also include a link to the revised FCC Form 497 in its monthly High Cost and Low Income Newsletter to subscribe, click here. The new version of the form will also be available electronically for online filers.

Q. When must my company start using the revised version of FCC Form 497?
A. The FCC and USAC will announce when the new form is effective and when it must be used. Before the new form is approved, ETCs must submit their support claims via the existing FCC Form 497.

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Telecommunications Companies Must Report Revenues on FCC Form 499-Q by May 1

High Cost and Lifeline Programs

Each quarter, all telecommunications carriers providing international and interstate telecommunications services, interconnected VOIP providers, and payphone providers that are aggregators, among others, are required to file an FCC Form 499-Q (Telecommunications Reporting Worksheet) with USAC.

FCC Form 499-Q is used to collect carrier revenue information and to determine its USF contribution obligation.

USAC encourages USF contributors to submit their FCC Form 499-Q using USAC's E-File System. Online users can pull up historical forms, edit and submit changes, and certify online.

All paper FCC Forms 499 should be mailed to:

Universal Service Administrative Company
Form 499 Data Collection Agent
2000 L Street NW, Suite 200
Washington, DC 20036

See Filing & Managing my 499s on the Contributors section of USAC's website for more details.

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Interstate Common Line Support (ICLS) – Revenue Requirement Revisions for Incumbents

High Cost Program

Rate-of-return incumbent local exchange carriers (ILECs) can make revisions to projected ICLS revenue data filed March 31 for the upcoming ICLS program year (July 1, 2012 to June 30, 2013) between April 1 and June 30.

Revisions to projected data for the ending ICLS program year (July 1, 2011 to June 30, 2012) are due by June 30. Both filings are made on FCC Form 508, which can be found on the High Cost Forms page.

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