High Cost Program Projections, Collections, and Disbursements Overview

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High Cost Program Projections, Collections, and
Disbursements Overview January 2010
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USF Quarterly Collection Disbursement Cycle
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USAC projects USF program demand and USAC admin
costs submits to FCC Nov., Feb., May Aug.
FCC reviews USAC submissions and sets
contribution factor for upcoming quarter by
issuing public notice.
Telecommunications companies use the contribution
factor to collect USF contributions through
customer bills.
USAC compiles carrier revenue data from Form 499
and submits aggregate data and proposed
contribution factor to FCC.

USAC receives carrier revenue projections from
Form 499 filed Feb. 1, May 1, Aug. 1, Nov. 1.
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USF Quarterly Collection Disbursement Cycle
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USAC receives the contributions and then
disburses Universal Service Fund Support to the
four USF programs.
USAC calculates monthly contributions based on
the contribution factor, mailing invoices by the
22nd.
USF invoices are due one month after they are
billed.
USF
Low Income
Schools Libraries
High Cost
Rural Health Care
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High Cost Quarterly Collection Disbursement
Cycle
Participants in the Collection Disbursement
Cycle
3/30
Provide line counts to USAC
5/1
File Form 499-Q with USAC
Files admin filing with FCC
5/2
6/1
Files projected revenue filing with FCC
6/15
Issues Public Notice on contribution factor
Contribution factor effective
7/1
7/1
Bill their customers with new factor
7/15
Receive USF invoice from USAC
8/15
Pay USF invoice to USAC
8/30
USAC
Disburses support to ETCs
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High Cost Forms
ETCs Submit Cost Data and Line Counts to USAC

• ILECs file Part 36 data with NECA USAC
  receives data electronically from NECA.
• ILECs file Part 54 data (LSS, IAS, ICLS)
  directly with USAC
• For some components ILECs file line count data
  directly with USAC.
• ILECs submit ICLS line counts to USAC on FCC
  Form 507.
• CETCs provide line counts via FCC Form 525
  (online or on paper).

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Disbursements Projections
There are several reasons disbursements may not
be the same as projections
HC01 High Cost Support With Capped CETC Support
Projected by State by Study Area 1Q2009

• Data Revisions
• Change in Eligibility Status
• Programmatic Disconnects
• Red Light Rule
• Late Payments for Contributions

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USAC receives carrier revenue projections from
Form 499
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USAC submits quarterly projections to FCC
Each program has a set of appendices.
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FCC Managing Director Issues Public Notice
Contribution Factors Quarterly Filings can be
found at http//www.fcc.gov/omd/contribution-fact
or.html.
Contribution factor becomes effective 14 days
after public notice if no comments received or
FCC adjustments are made.
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Carrier billing, USAC Invoicing Collection
This part of cycle takes about 45 days.
Carriers collect from customers based on
contribution factor.
Carrier submits USF obligation based on USAC
invoice.
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USAC disburses support to the four USF programs.
commonly known as Lifeline and Link Up, helps
eligible low-income consumers establish and
maintain telephone service by discounting
services provided to them by local telephone
companies.
ensures that consumers across the country have
access to and pay rates for telecommunications
services that are reasonably comparable to
services provided and rates paid in urban areas.
commonly known as E-rate, provides discounts to
help schools and libraries in every U.S. state
and territory receive affordable
telecommunications and Internet access.
provides reduced rates to rural health care
providers for telecommunications and Internet
services necessary for the provision of health
care.
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Disbursement Tool
USACs Website Contains a Disbursement Search Tool