Fund Administration
About Fund Administration:
- Fund Adminstration Overview
- How the Universal Service Fund Works
- Purpose of the Universal Service Fund
- Understanding Audits
Fund Administration Tools:
Who Must Contribute
Information on how Universal Service Fund obligations are calculated, who is exempt from paying into the fund, and how revenue filings can cause adjustments to USAC invoices.
Generally, companies that provide interstate telecommunications contribute to the fund. These providers are required to submit revenue data to USAC using Telecommunications Reporting Worksheet (Form 499). USAC makes payments from this central fund to support the High Cost, Low Income, Rural Health Care, and Schools and Libraries programs.
Interconnected Voice-over-Internet Protocol Providers
The FCC extended universal service obligations to providers of interconnected Voice-over-Internet Protocol (VoIP) services in an order released June 27, 2006 (FCC 06-94). The Commission defines “interconnected VoIP service” as “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.” The obligations established by the FCC apply to all VoIP communications made using an interconnected VoIP service, even those that do not involve the PSTN and regardless of how the interconnected VoIP provider facilitates access to and from the PSTN, whether directly or by making arrangements with a third party. The Commission has not yet classified interconnected VoIP services as “telecommunications services” or “information services,” as those terms are defined in the Communications Act of 1934, as amended (47 U.S.C. §§ 151 et seq.).
USAC is the administrator of the fund and invoices providers for their required contributions. All calculations are based on Federal Communications Commission-established methodology and contribution factors.
Consumers may notice a "Universal Service" line item on their telephone bills. This occurs when a provider chooses to recover its contributions directly from its customers through a line-item charge on its bills. The FCC does not require this. Each company makes a business decision about whether to directly assess its customers to recover its Universal Service Fund costs.
