Low Income
About Low Income:
- Overview of the Program
- Overview of the Process
- Site Visits
- Understanding Audits
- Filing Appeals
- Training Events
Low Income Tools:
2004 What's New Archive
USAC has implemented a new policy regarding negative Low Income disbursements
USAC has implemented a new policy of billing companies that receive Low Income
support (Lifeline, Link Up and Toll Limitation Service) and have a negative
disbursement amount for any given month. Previously, USAC would hold negative
disbursements until the support in subsequent months netted the negative amount
to a positive amount. Negative disbursement amounts can occur when USAC conducts
a true-up between a company’s projected support amount and the actual
support claimed, or when a company revises its previous support claims. Companies
that have negative disbursements will receive an invoice from USAC. Please
note that these invoices are subject to the Red Light Rule and, thus, failure
to pay on time could affect a company’s support payments from any of
the other USAC-administered support mechanisms.
Information on the Red Light Rule
The FCC has delayed the implementation of the Revised FCC Form 497
The FCC has delayed the implementation of the Revised FCC Form 497. ETCs
must use the old form until April 15, 2005. Please see the attached Public
Notice (
, 52kb). If you have any questions, please contact 866-873-4727 or lifilings.
USAC has posted a fillable PDF for the FCC Form 497 on its website
USAC has posted a fillable PDF for the FCC Form 497 on its website. The fillable PDF makes completing the revised 497 easier by:
- Pre-populating certain data fields
- Automatically calculating totals
- Producing alerts if important data fields within a block are left blank
Please Note: Adobe Reader does not save the data that you enter into form fields. When you’ve completed this form, you may be able to submit it for further processing or print it. To save the data that you enter into form fields, please complete the form using Adobe Acrobat 6.0 Professional or Adobe Acrobat 6.0 Standard, or later, instead of Adobe Reader.
Use Revised FCC Form 497 When Filing Low Income Support
Claims for September 2004
All eligible telecommunications carriers (ETCs) seeking reimbursement for Federal Low Income Universal Service Support should be aware that the Revised FCC Form 497 will take effect with the OCTOBER 15, 2004 filing.
ETCs that file on a quarterly basis will submit three FCC Form 497s in October:
- Submit the SEPTEMBER 2004 data month on the REVISED FCC Form 497.
- Submit the July and August data months on the OLD FCC Form 497.
ETCs that file on a monthly basis will submit one FCC Form 497 in October:
- Submit the SEPTEMBER 2004 data month on the REVISED FCC Form 497.
FCC Form 497s for September 2004 data month submitted on the old form will not be processed.
Please review USAC's Form 497 Training Materials if you have questions regarding how to complete the Revised FCC Form 497. There is a recording of the Sept. 8th Web Ex session on USAC’s website. You may also call 866-873-4727 with any questions.
Revised FCC Form 497 Training Session
On Wednesday, September 8th USAC will be hosting a live Form 497 training session for eligible telecommunications carriers (ETCs) that provide Low Income Universal Service support. This session will allow ETCs the opportunity to “walk through” the form line-by-line with USAC staff, and to ask questions regarding the new requirements necessary to complete the revised form 497. The training session will be held live via Web Ex. The first 50 respondents will be able to participate in the live session via Web Ex. There is also limited space available for those who would like to come to the USAC DC office to attend the training session. For those carriers that cannot participate in the live training, the session will be recorded and available on USAC’s Low Income website.
| When | Wednesday, September 8, 2004 |
| 2pm-3:30pm EDT | |
| Where: | Web Ex |
| Or | |
| 2000 L Street, Suite 200 Washington, DC 20036 |
If you would like to attend the live Web Ex session, please RSVP as soon as possible— the number of participants is limited. You will be contacted via e-mail with instructions on how to register for the session.
If you would like to attend the training at the USAC DC office, please contact Ta'Nea Davis or Pam Gallant ASAP—space
is very limited.
Information Is Now Available on Specific CETC Low Income Support
The following reports are available in PDF format.
Pend Oreille Telephone Forfeiture for Lifeline/Link-Up Violations
The FCC issued a Notice of Apparent Liability for Forfeiture against Pend Oreille Telephone, for failing to advertise the availability of Lifeline and Link Up support to the low-income customers residing on tribal lands within its study area.
- In Notice of Apparent
Liability for Forfeiture ("NAL") DA 04-1447, the Commission found
that Pend Oreille Telephone Company ("Pend Oreille") apparently
violated Section 214(e)(1)(B) and the Commission's rules by willfully and
repeatedly failing to publicize the availability of Lifeline and Link-Up
services by failing to advertise Lifeline or Link-Up to low-income residents
on tribal lands within its service territory. Pend Oreille is an
eligible telecommunications carrier ("ETC"), i.e., a telephone
company eligible to receive universal service support under Section 254. The
Commission found Pend Oreille apparently liable for a $25,000 forfeiture. The
Commission also found that Pend Oreille failed to comply with a directive
of the Enforcement Bureau ("Bureau") to provide certain information
and documents, admonishing Pend Oreille for that violation. The Commission
required Pend Oreille to file a report with the Enforcement Bureau within
60 days of the date of the NAL regarding whether it has come into compliance
with the obligation to advertise the availability of Lifeline and Link-Up "in
a manner reasonably designed to reach those likely to qualify" for
the services. The NAL is attached. Go
to FCC Notice [
]
On April 29, the Federal Communications Commission released a Report and Order and Further Notice of Proposed Rulemaking [, 1,531kb] on Lifeline and Link Up.
Some of the new rules and guidelines adopted in this Report and Order will affect consumers directly, while others consist of new administrative requirements for telecommunications carriers that offer Lifeline and Link Up.
USAC Announces Revised FCC Form 497
FCC Form 497 has been revised. Eligible Telecommunications Carriers (ETCs) use Form 497 to claim universal service support as reimbursement for offering discounted service to eligible low-income consumers through Lifeline, Link Up, and Toll Limitation Service.  The Federal Communications Commission revised the form in part to allow USAC to perform more validation of support claims. The new version of Form 497 will be rolled out in late 2004, no sooner than October 15, 2004.  A draft of the revised FCC Form 497 can be found on USAC's Low Income web site.
Please be advised that ETCs should not begin using the revised form at this time. USAC will work with ETCs to ensure they are aware that Form 497 has been revised and will provide instruction on how to complete the new form. Specific information about training opportunities and materials will be available on USAC's web site in upcoming weeks. ETCs should continue to use the "old" version of the Form 497 until USAC officially rolls out the revised version later this year.
For more information regarding the revised FCC Form 497, please visit the Revised FCC Form 497 Frequently Asked Questions. The FAQs will be updated as more information is available.
View the DRAFT FCC Form 497 [, 32kb] (not yet available for submission!)
View the DRAFT FCC Form 497 Instructions [, 150kb]
The Federal Communications Commission (FCC) has released a new Low Income Report and Order and Further Notice of Proposed Rulemaking
The Federal Communications Commission (FCC) has released a new Low
Income Report and Order and Further Notice of Proposed Rulemaking [, 1,531kb]
Consumers can call USAC’s toll free number to inquire about Lifeline and Link Up support.
Consumers with questions regarding the Lifeline and Link Up support mechanisms can now call the USAC Customer Resource Center at 888-641-8722. Please listen closely before selecting your options; the menu can change at any time. You will be connected to a USAC employee who will be able to answer general questions regarding the Lifeline and Link Up programs, the eligibility criteria for your state, how to apply for Link Up and how much of a discount is available in your state. This information is also available at lifelinesupport. PLEASE NOTE: You cannot apply for Lifeline and Link Up through USAC; you will need to contact your local telephone company directly.
USAC Names New CEO (4/5/2004)
The Universal Service Administrative Company (USAC) is pleased to announce
that Lisa M. Zaina will become its CEO. The Board of Directors unanimously
elected Ms. Zaina as CEO at their January meeting after the Chairman of
the Federal Communications Commission (FCC) approved the selection. Ms.
Zaina will start with USAC on March 1, 2004. View
FCC Press Release [, 93kb]
USAC Announces Phased Launch of the New FCC Form 498 (3/8/2004)
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.
Form received by USAC |
Target group of carriers |
Payment affected |
April 1 - April 30 |
AK, CA, HI, ID, NV, OR, WA |
May payment - paid on June 30 |
May 1 - May 31 |
AZ, CO, MT, NM, TX, UT, WY |
June payment - paid on July 30 |
June 1 - June 30 |
KS, MN, ND, SD |
July payment - paid on Aug. 31 |
July 1 - July 31 |
IA, NE |
Aug. payment - paid on Sept. 30 |
August 1 - August 31 |
AL, AR, LA, OK, MO, MS |
Sept. payment - paid on Oct. 29 |
September 1 - September 30 |
IN, KY, OH, TN |
Oct. payment - paid on Nov. 30 |
October 1 - October 31 |
IL, MI, WI |
Nov. payment - paid on Dec. 31 |
November 1 - November 30 |
CT, MA, ME, NH, NJ, NY, RI, VT, PA, DC, DE, MD |
Dec. payment - paid on Jan. 31 |
December 1 - December 31 |
AS, FL, GA, GU, MP, PR, SC, VI, NC, VA, WV |
Jan. payment - paid on Feb. 28 |
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.
