ICLS Deadline for 2003 True Up Information is December 31, 2004

Incumbent Eligible Telecommunications Carriers (ETCS) that projected Interstate Common Line Support (ICLS) for any part of calendar year 2003, must file actual ICLS data for calendar year 2003 on December 31, 2004. Read Full Article

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LSS Deadline for 2003 True Up Information is December 31, 2004

Incumbent Eligible Telecommunications Carriers (ETCS) who filed for Local Switching Support (LSS) for the calendar year 2003, must file actual LSS data (true up data) for calendar year 2003 no later than December 31, 2004. Read Full Article

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High Cost Web Tool Improvements Made

Important improvements were made to two High Cost web tools. Both the High Cost Disbursement Tool and the High Cost Disaggregation Zone and Map Tool were updated. The new features are summarized below:

Disbursement Tool

• Search by state is now allowed.

• The search and results page now display the range of data available, e.g. (currently) Jan 2003 through Sep 2004.

• An informative message is displayed when no records match the search criteria, rather than merely displaying an empty grid.

Disaggregation Zone and Map Tool

• Now includes the official zone names for disaggregated ILEC study areas.

• Maps are presented with the corresponding zone.

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Incumbent Eligible Telecommunications Carriers (ETCs) Serving Study Areas with 50,000 or Fewer Access Lines Must File Projections for Local Switching Support (LSS) No Later Than October 1, 2004 to Receive LSS in Calendar Year 2005.

You must submit the data necessary to determine your projected local switching support revenue requirement on an OMB approved LSS form, which can be found in the Forms Section of the USAC web site. If you are an average schedule company, you should complete LSS Form A. If you are a cost company, you should complete LSS Form C. You must also submit the required certification form, attached to the instructions for the above forms.

Whether you are an average schedule or a cost company, you may submit your Local Switching Form to USAC in one of three (3) ways:

If the National Exchange Carrier Association (NECA) files your LSS data on your behalf, NECA must submit the same data as required on the LSS forms. In addition, NECA must file your data with USAC no later than October 1, 2004.

Your LSS projections must be received by USAC no later than October 1, 2004 for LSS eligibility in calendar year 2005. If your LSS projections are not timely filed, you will not be eligible to receive LSS in 2005, absent a waiver from the FCC.

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October 1 Certification Reminder

All carriers, rural as well as non-rural, eligible to receive High Cost Loop support, Local Switching Support, High Cost Model support, and high cost support received pursuant to the purchase of exchanges are subject to an annual certification requirement that has a direct impact on those carriers’ receipt of high cost universal service support.   The certification for 2005 for both rural and non-rural carriers is due on or before October 1, 2004.  Without that certification, carriers will not be eligible for the first quarter 2005 high cost support for which they would otherwise be qualified.  Provided below is a summary of the components of this certification requirement.

What must be contained in the certification?

• The certification must state that all federal high cost support will be used only for the provision, maintenance, and upgrading of facilities and services for which the support is intended, consistent with section 254(e) of the Communications Act.

• The certification may be in the form of a letter from the appropriate state regulatory authority or authorized corporate officer where the state lacks jurisdiction.

• The certification must clearly reference CC Docket No. 96-45.

• The certification should list rural carriers separately from non-rural carriers, in those states in which non-rural carriers are certified.

• The certification should include each carrier’s study area code, the six-digit number assigned to each carrier by the National Exchange Carrier Association (NECA). 

• Where eligible carriers have both an incumbent and a competitive company operating with the same name, the incumbent and the competitive company should be listed separately, each with its unique study area code.

Who must submit the certification?

• If a carrier is subject to state jurisdiction, the certification must come from the appropriate state regulatory authority.  In states in which the commission has limited jurisdiction, the state commission need not initiate the process.  Rather, the carriers may initiate the process, formulate plans to comply with section 254(e), and present them to the state commission, which may then in turn certify the carriers.

• If the carrier is not subject to state jurisdiction, the carrier may certify directly to the FCC and USAC.  The certification may be in the form of a sworn affidavit executed by a corporate officer, attesting to the use of the support only for the provision, maintenance, and upgrading of the facilities and services for which the support is intended.

• Carriers are encouraged to work closely with their state commissions.

What carriers are covered by this certification requirement?

All carriers seeking support from the following components of the high cost universal service support mechanism are subject to this certification requirement:  High Cost Loop Support, Local Switching Support, and High Cost Model Support.  That is, all rural carriers and all competitive ETCs seeking high cost support in the service area of a rural LEC are subject to the rural certification requirement contained in section 54.314 of the FCC’s rules.  In addition, all non-rural carriers that are eligible to receive forward-looking support under the high cost model, as well as all competitive ETCs seeking high cost support in the service area of such a non-rural carrier, are subject to the non-rural certification requirement contained in section 54.313 of the FCC’s rules.

Where should certifications be filed?

Certifications must be filed with both the FCC and USAC at the following addresses:

• FCC:
  Marlene H. Dortch
  Office of the Secretary
  Federal Communications Commission
  445 – 12^th Street, SW , Room TW-A306
  Washington , DC 20554

• USAC
  Irene Flannery
  Universal Service Administrative Company
  2000 L Street, NW – Suite 200
  Washington , DC 20036

When must certifications be filed?

In order to receive first quarter 2005 high cost support, certifications must be submitted on orbefore October 1, 2004.  The certifications must be received by the FCC and USAC on or before October 1.  The consequence of failing to file is loss of first quarter 2005 support, absent a waiver from the FCC.   If a state commission or a carrier misses the October 1 deadline, the following schedule applies:

• Certify by January 1, 2005: The carrier may receive support for the second, third, and fourth quarters of 2005.

• Certify by April 1, 2005: The carrier may receive support for the third and fourth quarters of 2005.

• Certify by July 1, 2005: The carrier may receive support for the fourth quarter of 2005.

• Fail to certify by July 1, 2005: The carrier may not receive any high cost support for 2005.

Has your certification been received by USAC?

To see if USAC has received your October 1 certification, please visit our October 1 certification checklist.

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REMINDER: CERTIFICATION FOR NEW RATE COMPARABILITY REVIEW FOR NON-RURAL CARRIERS SERVING IN RURAL AREAS IS DUE ON OCTOBER 1, 2004

In an order released in October of 2003, the Federal Communications Commission (FCC) adopted a new annual state certification requirement that will take effect for the first time on October 1, 2004.  Pursuant to section 54.316 of the FCC’s rules, each state is required annually to review the comparability of residential rates in rural areas of the state served by non-rural incumbent local exchange carriers (ILECs) to urban rates nationwide, and to certify to the FCC and the Universal Service Administrative Company (USAC) as to whether the rates are reasonably comparable.  Please note that this new certification is in addition to the annual certifications in which states certify to the use of high cost universal service funds, which are also due on October 1.

For the rate comparability certification, states may use a safe harbor and presume for certification purposes that the residential rates in rural areas served by non-rural ILECs are reasonably comparable to urban rates nationwide, if the rates are below the nationwide urban rate benchmark.  The nationwide urban benchmark is the most recent average urban rate plus two standard deviations, or $34.16 for the upcoming certification period.  This benchmark amount will be adjusted annually.

If a state does not rely on the safe harbor provision, or certifies that the rates are not reasonably comparable, the state must fully explain its rate comparability analysis and provide data supporting its certification, including but not limited to residential rate data for rural areas within the state served by non-rural ILECs.  If a state certifies that the rates are not reasonably comparable, it must also explain why the rates are not reasonably comparable and explain what action it intends to take to achieve rate comparability.

Details of this requirement, along with rate comparability guidelines and a basic service rate template, can be found in the FCC’s Order on Remand, Further Notice of Proposed Rulemaking, and Memorandum Opinion and Order, CC Docket No. 96-45, FCC 03-249, released on October 27, 2003.  Go to the Order online [MS Word].

Please remember that the annual rate comparability certification is due to the FCC and USAC on October 1, 2004 and pertains to rates as of July 1, 2004.  Certifications should be filed with both the FCC and USAC at the addresses below:

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Information Is Now Available on Specific CETC High Cost Support

The following reports are available in PDF format.

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New Disbursement Tool for All Carriers That Receive High Cost Support

The Disbursement Tool will enable you to utilize various search methods to locate the amount of High Cost support disbursed on a monthly basis. Data will be available as of 2003. It can be found under the Tools section of High Cost. Go to the Disbursment Tool.

The High Cost Division Will Be Closed on Monday, July 5, 2004 in Observance of Independence Day (7/1/04)

ICLS & IAS Certifications Due June 30th. (6/3/04)

• IAS Cert Reminder Letter - May 2004

• ICLS Cert Reminder Letter - May 2004

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Revisions Due for Form 508 Projections by June 30th

Carriers are permitted to submit a correction to their March 31 projected carrier common line revenue requirementsand supporting data until June 30 for the upcoming funding year. Additionally, on June 30, carriers are permitted to submit an update to the projected data for the funding year ending on that date. Permitting these revisions to projected data for current and upcoming ICLS funding years will mitigate the lag between projected and actual data filings and give carriers more meaningful opportunities to revise projections to adjust ICLS where necessary. After the June 30 correction deadline each year, any corrections to projected common line revenue requirement and supporting data shall be made in the form of true-ups, using actual cost and revenue data that a carrier must report in FCC Form 509, Annual Common Line Actual Cost Data Collection Form. 47 C.F.R Section 54.903(a)(3).

You must submit certifications with the signature of an authorized person with the FCC Form 508. If you are filing FCC Form 508 on your own behalf, you must complete the reporting carrier certification page. If you are authorizing an agent to file FCC Form 508 on your behalf, on the other hand, you must complete the top portion of the agent certification page. Once you have completed the top portion of the agent certification page, your authorized agent must complete the bottom portion of the agent certification page.

Carriers submitting FCC Form 508 on their own behalf. If you are filing FCC Form 508 on your own behalf, an authorized officer or employee of your company must complete the reporting carrier certification page of FCC Form 508. By completing the reporting carrier certification page, the officer or employee of the reporting carrier is certifying that: (1) he/she is an officer or an employee of the reporting carrier; (2) his/her responsibilities include ensuring the accuracy of the projected annual common line requirement information reported on the form; and (3) the information reported on the form is accurate to the best of his/her knowledge. The certification must be signed by an authorized officer or employee of the company and must be submitted to USAC along with the projected annual common line revenue requirement information.

Carriers authorizing an agent to file FCC Form 508 on their behalf. If you are authorizing an agent to file FCC Form 508 on your behalf, you, as the reporting carrier, must complete the top portion of the agent certification page of FCC Form 508. By completing the agent authorization section, the officer or employee of your company is certifying that:  (1) the agent identified on the agent certification is authorized to submit the projected annual common line revenue requirement information to USAC on your behalf; (2) he/she is an officer or employee of the reporting carrier; (3) his/her responsibilities include ensuring the accuracy of the projected annual common line revenue requirement information provided to the authorized agent; and (4) the projected annual common line revenue requirement information provided to the authorized agent is accurate to the best of his/her knowledge. The certification must be signed by an authorized officer or employee of the company. You will then provide the certification with the signature of the authorized person to your authorized agent.

Your authorized agent is responsible for completing the bottom portion of the agent certification page of FCC Form 508. By completing the agent certification section, the authorized agent is certifying that: (1) he/she is authorized to submit the information on your behalf; (2) the projected annual common line revenue requirement information provided on the form is based on data received from you (the reporting carrier); (3) the information provided on the form is accurate to the best of the agent’s knowledge; and (4) the authorized agent will provide copies of the projected annual common line revenue requirement filing to you within 15 days. The certification must be signed by the authorized agent or an employee of the authorized agent.

Certifications with the signatures of the authorized persons, as well as all of the information requested on the worksheet of FCC Form 508 for all incumbent rate-of-return carriers, must be received by USAC in accordance with the filing dates on page 2 of these instructions. Please remember that, if the form is submitted electronically on CD or computer disk in Excel 97 or above, the certifications with the signatures of the authorized persons still must be received by USAC by the due dates.

For additional instructions and details, please review the 508 instructions found on our website.

For questions, please contact USAC at:

USAC
444 Hoes Lane
RRC 4A1060
Piscataway, NJ 
(877)-877-4925

Submit an E-mail

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Price Cap Line Counts & CMT Revenues due

Each Price Cap LEC is required to file line counts with the Universal Service Administrative Company (USAC) on a quarterly basis, and CMT revenue, UNE Loops and Line Port rates, and boundary information for each UNE zone on an annual basis. In order to qualify for Interstate Access Support, you must report this information as follows:

• Line Counts: Your next line count filing is due by the last business day of the quarter, March 31, 2004, for the number of lines you served for the period ending December 31, 2003. Your lines must be reported by UNE zone and customer class. (Residential and single-line business lines are reported separately from multi-line business lines.)

• Average Price Cap CMT Revenue per Line per Month: Your filing of CMT revenue is due on April 16, 2004. Your revenues must be reported for each study area in accordance with Sections 54.800(a) and 54.802(a) of the Federal Communications Commission's (FCC) rules.

• Rates established for UNE Loops and UNE Line Ports: Your filing of UNE Loops and UNE Line Port rates is due on April 16, 2004. Your rates must be reported for each study area where UNE Zones have been established as of the date of the filing.

• Information sufficient to determine the boundaries of each UNE Zone: Your filing of UNE Zone boundary information is due on April 16, 2004. Your boundary information must be reported for each study area where UNE Zones have been changed or newly established as of the date of the filing. If there have been no changes since the previous filing, a statement that there have been no changes may be submitted in lieu of such information.

If any of your filings are received after the filing date, you will need to file a petition for waiver with the FCC. USAC is not authorized to waive the filing deadline, so only the FCC's grant of a waiver will permit USAC to use your filings to calculate Interstate Access Support.

If you have additional questions, please contact USAC Customer Service Center at 877-877-4925.

Sincerely,

Irene M. Flannery
Vice President

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Reminder - 508 Forms due 3/31/04

In the MAG Order (FCC 01-304), the Federal Communications Commission (FCC) modified its rules to reform the interstate access charge and universal service support system for incumbent local exchange carriers (LECs) subject to rate-of-return regulation. Pursuant to 47 C.F.R Sections 54-901-54.904, the FCC established the Interstate Common Line Support (ICLS) Mechanism.

On March 31st, each rate-of-return incumbent carrier must file a projected annual common line requirement form setting forth its projections for the upcoming period July 1 through June 30. 47 C.F.R. Section 54.903(a)(3).

You must submit certifications with the signature of an authorized person with the FCC Form 508. If you are filing FCC Form 508 on your own behalf, you must complete the reporting carrier certification page. If you are authorizing an agent to file FCC Form 508 on your behalf, on the other hand, you must complete the top portion of the agent certification page. Once you have completed the top portion of the agent certification page, your authorized agent must complete the bottom portion of the agent certification page.

Carriers submitting FCC Form 508 on their own behalf. If you are filing FCC Form 508 on your own behalf, an authorized officer or employee of your company must complete the reporting carrier certification page of FCC Form 508. By completing the reporting carrier certification page, the officer or employee of the reporting carrier is certifying that: (1) he/she is an officer or an employee of the reporting carrier; (2) his/her responsibilities include ensuring the accuracy of the projected annual common line requirement information reported on the form; and (3) the information reported on the form is accurate to the best of his/her knowledge. The certification must be signed by an authorized officer or employee of the company and must be submitted to USAC along with the projected annual common line revenue requirement information.

Carriers authorizing an agent to file FCC Form 508 on their behalf. If you are authorizing an agent to file FCC Form 508 on your behalf, you, as the reporting carrier, must complete the top portion of the agent certification page of FCC Form 508. By completing the agent authorization section, the officer or employee of your company is certifying that: (1) the agent identified on the agent certification is authorized to submit the projected annual common line revenue requirement information to USAC on your behalf; (2) he/she is an officer or employee of the reporting carrier; (3) his/her responsibilities include ensuring the accuracy of the projected annual common line revenue requirement information provided to the authorized agent; and (4) the projected annual common line revenue requirement information provided to the authorized agent is accurate to the best of his/her knowledge. The certification must be signed by an authorized officer or employee of the company. You will then provide the certification with the signature of the authorized person to your authorized agent.

Your authorized agent is responsible for completing the bottom portion of the agent certification page of FCC Form 508. By completing the agent certification section, the authorized agent is certifying that: (1) he/she is authorized to submit the information on your behalf; (2) the projected annual common line revenue requirement information provided on the form is based on data received from you (the reporting carrier); (3) the information provided on the form is accurate to the best of the agent's knowledge; and (4) the authorized agent will provide copies of the projected annual common line revenue requirement filing to you within 15 days. The certification must be signed by the authorized agent or an employee of the authorized agent.

Certifications with the signatures of the authorized persons, as well as all of the information requested on the worksheet of FCC Form 508 for all incumbent rate-of-return carriers, must be received by USAC in accordance with the filing dates on page 2 of these instructions. Please remember that, if the form is submitted electronically on CD or computer disk in Excel 97 or above, the certifications with the signatures of the authorized persons still must be received by USAC by the due dates.

Request for Confidential Treatment of Filed Data.
You may request confidential treatment of some or all of the data filed to qualify for ICLS by making such a request in your cover letter transmittal of your FCC Form 508 and by complying with the requirements set forth in 47 C.F.R. Section 0.459.

Where to File Completed Forms.
You are encouraged to submit the form electronically on CD or computer disk in Excel 97 or above. The form must be received at the address listed below by the due date. If you are unable to submit the completed form in electronic format, please submit your paper copies to the same address.

U.S. Mail, Overnight, or Expedited Mail/Courier Services:
USAC
444 Hoes Lane
RRC 4A1060
Piscataway, NJ
(877)-877-4925

If You Have Questions.
Please consult the USAC web site, for important information and updates.

You may submit questions via e-mail.

You may telephone USAC's HCLI Customer Service Center at (877) 877-4925 (toll-free).

You may fax your questions to USAC's HCLI Customer Service Center at (866) 873 (USF)-4695 (toll free).

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Quarterly Line Counts Due March 30th

All Eligible Telecommunications Carriers (ETCs) with a Competitive Eligible Telecommunications Carrier (CETC) filing line counts in their service area(s) are required to file line counts with the Universal Service Administrative Company (USAC) on a quarterly basis. In addition, all CETCs are required to file required line counts with USAC on a quarterly basis. In order to qualify for high cost support, you must report your line counts as follows:

• High Cost Loop and Local Switching Support:  Your next line count filing is due no later than March 30, 2004 for the number of lines you served as of September 30, 2003. For ETCs, your lines must be reported consistent with the disaggregation path you selected. For CETCs, your lines must be reported consistent with the disaggregation path selected by the incumbent carrier(s) in whose service area(s) you serve lines. You may obtain copies of the appropriate disaggregation plans by calling USAC (202-776-0200).

• Interstate Common Line Support:  Your next line count filing is due no later than March 30, 2004 for the number of lines you served as of September 30, 2003. You, or your agent, must report your lines using FCC Form 507, which is available on the Forms Section of USAC's website. Your lines must be reported by customer class. (Residential and single line business lines are reported separately from multi-line business lines.)  For ETCs, your lines must be reported consistent with the disaggregation path you selected. For CETCs, your lines must be reported consistent with the disaggregation path selected by the incumbent carrier(s) in whose service area(s) you serve lines

• High Cost Model Support:  Your next line count filing is due no later than March 30, 2004 for the number of lines you served as of September 30, 2003. For both ETCs and CETCs, your lines must be reported by wire center.

• Interstate Access Support:  Your next line count filing is due by the last business day of the quarter, March 31, 2004, for the number of lines you served as of December 31, 2003. For both ETCs and CETCs, your lines must be reported by UNE zone and customer class. (Residential and single line business lines are reported separately from multi-line business lines.) 

Remember:  Line count filings for all High Cost support mechanisms except IAS must be received by USAC no later than March 30, 2004. IAS must be received at USAC by March 31, 2004. If the line count filing is received after the filing date, a petition for waiver will need to be filed with the FCC. Because USAC is not authorized to waive filing deadlines, only the FCC's grant of a waiver will permit USAC to use your March line counts to calculate high cost support.

USAC is providing three (3) sample line count letters for CETCs to use for their quarterly line count filings. The first sample letter provides a format for the submission of High Cost Loop (HCL), Local Switching Support (LSS), and Long Term Support (LTS) line counts. The second sample letter provides a format for the submission of High Cost Model (HCM) support line counts. The last sample letter provides a format for the submission of Interstate Access Support (IAS) line counts. Please remember that CETCs must report line counts for Interstate Common Line Support (ICLS) using FCC Form 507. All High Cost Support Mechanism forms and sample letters can be found on the High Cost Forms page.

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USAC Announces Phased Launch of the New FCC Form 498

The FCC Form 498 is used by carriers to obtain a Service Provider Identification Number (SPIN), to provide certain contact information and, most importantly, to direct USAC where to send the carriers' universal service payments. This form was recently revised by the Federal Communications Commission, and each carrier receiving high cost and low income support is required to submit a revised Form 498 to USAC.

USAC is taking a phased approach to launching the new Form 498 to ensure that all submissions are processed in a timely fashion. That is, the state in which you are located dictates when you should file your Form 498. The following table will help you determine when to file your Form 498 and when the elections you make on that form will be reflected in your high cost and low income payments.

USAC would also like to make you aware of the following helpful hints:

• You should submit the Form 498 on-line. Go to USAC's website and follow the instructions to submit the form on-line.

• There is absolutely no advantage to submitting your form in advance of the deadlines outlined in the table. USAC will work to ensure that your high cost and low income payments continue uninterrupted.

• Today, most NECA member companies receive their high cost and low income payments through NECA who, in turn, receives those funds on your behalf from USAC. You may opt to continue that process by entering NECA's banking information in blocks 4 and 6 of the Form 498. On the other hand, you may opt to receive your high cost and low income payments directly. In that case, you would enter your own banking information in blocks 4 and 6 of the Form 498. In either case, please be assured that the calculation of your support will not change.

• Please visit the High Cost website or the Low Income website for a set of frequently asked questions (FAQs) on the Form 498 and the filing process. A copy of the FAQs is also enclosed for your reference. If you have additional questions, please feel free to email USAC's Billing, Collections, and Disbursements Call Center or call 1-888-641-8722.

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