2012 499-A Webinar - Universal Service Administrative Company

2012 499-A Webinar
March 2012
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Topics
What is New for 2012
Completing the 2012 FCC Form 499-A
2012 499 A/Q True Up
Navigating E-File
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What is New For 2012
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Non-Interconnected VoIP
For Purposes of TRS Contribution Purposes

All providers of “non-interconnected VoIP service” (as defined in section 64.601(a) of
the Commission’s rules) with interstate end-user revenues subject to TRS
contributions must file this Worksheet in order to register with the Commission and
report their revenues for purposes of calculating TRS contributions. See the
instructions on page 3, See also FCC Order 11-150.

Non-Interconnected VoIP Provider. — Provides non-interconnected VoIP service,
which is a service that (i) enables real-time voice communications that originate from
or terminate to the user’s location using Internet protocol or any successor protocol
and (ii) requires Internet protocol compatible customer premises equipment, but (iii) is
not an interconnected VoIP service. See the instructions at Appendix B.
NOTE:
Interconnected VoIP Provider. — Provides “interconnected VoIP service,” which is 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. See
the instructions at Appendix B.
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Non-Interconnected VoIP
For Purposes of TRS Contribution Purposes
Types of Non-Interconnected VoIP Providers
 Providers that offer non-interconnected VoIP services on a stand-alone basis for a
fee.

Certain other providers of other (non-VoIP) services that generate end-user revenues
and integrate non-interconnected VoIP service into their other (non-VoIP) services to
contribute to the TRS Fund.
–
For TRS purposes, “providers of non-interconnected VoIP services that are offered with other
(non-VoIP) services that generate end-user revenues [are required] to allocate a portion of
those end-user revenues to the non-interconnected VoIP service in two circumstances: (1)
when those providers also offer the non-interconnected VoIP service on a stand-alone basis
for a fee; or (2) when those providers also offer the other (non-VoIP) services without the
non-interconnected VoIP service feature at a different (discounted) price.” Instructions pg
20, footnote 44.
–
For example, were a provider to offer a video gaming service with an integrated non-interconnected VoIP service for $20 per month, and also
offer the non-interconnected VoIP service separately for $5 per month, the provider would be obligated to attribute $5 per month to the noninterconnected VoIP component for purposes of making TRS contributions. Alternatively, if a provider were to offer a video gaming service with a
non-interconnected VoIP service component for $20 per month and without that component for $15 per month, $5 per month would be attributed
to the non-interconnected VoIP service component. FCC Order FCC 11-150 footnote 40Nothing in this Report and Order disturbs or calls into
question the validity of apportioning assessable revenues from bundled services offerings for purposes of Universal Service Fund (“USF”)
contributions, as currently allowed under the CPE Bundling Order. See Policy And Rules Concerning The Interstate, Interexchange
Marketplace/Implementation Of Section 254(G) Of The Communications Act Of 1934, As Amended/In 1998 Biennial Review -- Review Of
Customer Premises Equipment And Enhanced Services Unbundling Rules In the Interexchange, Exchange Access and Local Exchange
Markets, Report and Order, 16 FCC Rcd 7418, 7446-48, ¶¶ 50-54 (2001) (“CPE Bundling Order”).
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Non-Interconnected VoIP
For Purposes of TRS Contribution Purposes
Types of Non-Interconnected VoIP Providers cont.
–
For example, were a provider to offer a video gaming service with an integrated noninterconnected VoIP service for $20 per month, and also offer the non-interconnected VoIP
service separately for $5 per month, the provider would be obligated to attribute $5 per
month to the non-interconnected VoIP component for purposes of making TRS contributions.
Alternatively, if a provider were to offer a video gaming service with a non-interconnected
VoIP service component for $20 per month and without that component for $15 per month,
$5 per month would be attributed to the non-interconnected VoIP service component.
Nothing in this Report and Order disturbs or calls into question the validity of apportioning
assessable revenues from bundled services offerings for purposes of Universal Service Fund
(“USF”) contributions, as currently allowed under the CPE Bundling Order. See Policy And
Rules Concerning The Interstate, Interexchange Marketplace/Implementation Of Section
254(G) Of The Communications Act Of 1934, As Amended/In 1998 Biennial Review -Review Of Customer Premises Equipment And Enhanced Services Unbundling Rules In the
Interexchange, Exchange Access and Local Exchange Markets, Report and Order, 16 FCC
Rcd 7418, 7446-48, ¶¶ 50-54 (2001) (“CPE Bundling Order”). See the FCC Order 11-150,
Footnote 40.
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Non-Interconnected VoIP
For Purposes of TRS Contribution Purposes
Reporting Revenues, See the instructions on page 20
 Line 418.4. — Revenues from non-interconnected VoIP services sold to end users
that are not otherwise includable on Lines 403 to 417. Only include revenues from
October 1, 2011 through December 31, 2011; report revenues from January 1, 2011
through September 30, 2011 on Line 418.4.
Allocating Revenues between the Jurisdictions, See the instructions on pages 22-25
 Actuals

Traffic Studies - Non-interconnected VoIP providers may rely on traffic studies if they
are unable to determine their actual interstate and international revenues.

Safe Harbor - 64.9% of interconnected VoIP and non-interconnected VoIP
telecommunications revenues
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TRS Lines 512 - 514
Instructions pg. 27
Line 512 – Gross TRS Contribution Base (calculated field)
 The totals on this line represent gross end-user revenues for the purpose of
determining contributions to TRS.

TRS contribution base revenues reportable on Line 512(a) should equal the subtotal
of: Line 420(a) + Line 412(a) + Line 418.4(a) - Line 511(a).

TRS contribution base revenues reportable on Line 512(b) should equal the subtotal
of: Line 420(d) + Line 420(e) + Line 412(e) + Line 418.4(d) + Line 418(e) – Line
511(b)
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TRS Lines 512 - 514
Instructions pg. 27
Line 513 – Uncollectible revenue/bad debt expense associated with TRS contribution
base amounts shown on Line 512
 Line 513. — Show the portion of the uncollectible revenue/bad debt expense reported
on Line 421 that is associated with just the TRS contribution base amounts reported
on Line 512. Filers that maintain separate detail of uncollectibles by type of business
should rely on those records in determining the portion of gross uncollectibles
reported on Line 421 that should be reported on Line 513. Filers that do not have
such detail should make such assignments in proportion to reported gross revenues.
Filers must be able to document how the amounts reported on Line 513 relate to the
uncollectible revenue/bad debt expense associated with gross billed revenues
reported on Line 421.
Line 514 – Net TRS contribution base revenues (calculated field)
 Line 514. — Net TRS contribution base revenues should equal the amounts reported
on Line 512 less the amounts reported on Line 513.
NOTE:
TRS will use the Net TRS Contribution Base Revenues on Line 514(b) to calculate its filer
contributions. See the instructions on page 31.
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Completing the 2012 FCC Form 499-A
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Who must file the 499-A?
Instructions pg 2-3

ALL intrastate, interstate and international providers of telecommunications within the
United States, with very limited exceptions, must file the FCC Form 499A.

“Telecommunications” as defined by the FCC for purposes of the FCC Form 499-A is
the transmission, between or among points specified by the user, of information of
the user’s choosing, without change in the form or content of the information as sent
and received.
NOTE:
It is important to understand the overall customer of the service and what type of
service they are using. If the overall use of a product is defined as telecommunications
then all of the components of that product are telecommunications.
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Who is exempt from direct contributions to USF?
Instructions pg. 4-6

Government, broadcasters, schools and libraries
– Government entities that purchase telecommunications services in bulk on behalf
of themselves (e.g., state networks for schools and libraries) are not required to
file or contribute directly to universal service.

System Integrators and Self Providers
– System integrators that derive less than 5% of their system integration revenues
from the resale of telecommunications are not required to file.
– Entities that provide services only to themselves or to commonly-owned affiliates
need not file.

De Minimis companies must file!
– All interconnected VoIP and all telecom carriers are not required to contribute
directly to the universal service support mechanisms for a given year if their
contribution for that year is less than $10,000, however they must file the 499-A
regardless.
NOTE:
For USF-purposes, non-contributors must be treated as end users by their underlying
carriers and therefore may end up contributing indirectly as a result of USF passthrough surcharges.
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Who is exempt from contributing to USF
Customers who are USF Exempt

Lifeline Customers – Companies cannot collect USF fees from a Lifeline program
participant on any services supported by universal service.
(http://www.fcc.gov/cgb/consumerfacts/lllu.pdf)

Military Deployed Outside the US – Companies cannot charge Universal Service
fees and TRS fees to calls placed by Armed Forces personnel stationed or deployed
outside the United States to their families or friends at home. (In the Matter of
Implementation of Call Home Act of 2006, WC Docket 07-2, Order, FCC 07-2, 22
FCC Rcd 1020 (2007).
All other US customers may be subject to USF directly or indirectly by
way of pass-through surcharges from their carrier.
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Reporting after a Sale or Merger
Instructions pg. 13
 If the operations of an entity ceased during the previous calendar year and are now
part of a successor, the successor must include the previous calendar year revenues
of the now defunct entity with its own worksheet.
 The only exception is if it is specifically written into the sales agreement that each
company will be responsible for filing its own 499A.
 USAC will use the combined 499Q revenues of both companies when calculating the
purchasing company’s 499A True Up.
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Record Keeping
Instructions pg 8
Filers shall maintain records and documentation to justify information reporting on
the Worksheet, including the methodology used to determine projections and to
allocate interstate revenues, for five years. Additionally, filers must make available all
documents and records that pertain to them, including those of contractors and
consultants working on their behalf, to the Commission’s Office of Inspector General, to
the Universal Service Administrative Company (USAC), and to auditors upon request.
Review by the Commission or USAC may cover any existing corporate records, not just
those specifically maintained for these purposes. Entities acquiring carrier operations
through consolidation, merger, etc., must maintain the records of the acquired entity.
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499-A, Block 1: Key Fields
Instructions pg. 9

Line 101 – Filer ID
Enter the “Filer 499 ID” number for the filer, which is assigned by USAC after a
company files its first FCC Form 499-A. This code should be entered at the top of
each page on the paper version of the Worksheet, the cover letter, and on any
supporting documentation. Filer 499 ID numbers can be found at:
– FCC Form 499 Filer Database (http://fjallfoss.fcc.gov/cgb/form499/499a.cfm)
– Telecommunications Provider Locator (http://fcc.gov/wcb/iatd/lec.html)
First time filers should write “New” in the block. New filers will be assigned a Filer 499
ID number after submitting a completed Worksheet.

Line 103 - Employer Identification Number (EIN)
Enter the Internal Revenue Service (IRS) employer identification number (EIN) for the
filer, which should be the same EIN that the company uses to file any federal taxes, if
the filer offers services subject to such taxes. The EIN is the entity’s taxpayer
identification number (TIN) or an individual’s social security number (SSN).
Consolidated filers must provide the EIN of the holding company.
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499-A, Block 1: Key Fields
Instructions pg 10 & Appendix B

Line 105 - Communication business (CXR Type)
Must rank (up to five) communications business types. At least one CXR Type must be selected.
CAP/CLEC (Competitive Access Provider/Competitive Local Exchange Carrier). Competes
with incumbent local exchange carriers (ILECs) to provide local exchange services, or
telecommunications services that link customers with interexchange facilities, local exchange
networks, or other customers, other than Coaxial Cable providers.
Common Reporting Lines 304.1, 404.1, 404.2, 404.3, 405, & 406
Cellular/PCS/SMR (Cellular, Personal Communications Service, and Specialized
Mobile Radio). Specialized Mobile Radio - telephone service provider) -- primarily provides
wireless telecommunications services (wireless telephony). This category includes all providers of
real-time two-way switched voice services that interconnect with the public switched network,
including providers of prepaid phones and public coast stations interconnected with the public
switched network. This category includes the provision of wireless telephony by resale. An SMR
provider would select this category if it primarily provides wireless telephony rather than dispatch
or other mobile services.
Common Reporting Lines – 309, 409, 410 & 414.1
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499-A, Block 1: Key Fields
Instructions pg 10 & Appendix B
Coaxial Cable. — Uses coaxial cable (cable TV) facilities to provide local exchange services or
telecommunications services that link customers with interexchange facilities, local exchange
networks, or other customers.
Common Reporting Lines 304.1, 404, & 405
ILEC (Incumbent Local Exchange Carrier). — Provides local exchange service. An incumbent
LEC or ILEC generally is a carrier that was at one time franchised as a monopoly service provider
or has since been found to be an incumbent LEC. See 47 U.S.C. § 251(h).
Common Reporting Lines 304.1, 404.1, 404.2, 404.3, 405, & 406
IXC (Interexchange Carrier). — Provides long distance telecommunications services
substantially through switches or circuits that it owns or leases.
Common Reporting Lines 311, 312, 414.1, & 415
Interconnected VoIP Provider. — Provides “interconnected VoIP service,” which is 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.
Common Reporting Lines 304.1, 404.4, 404.5, & 414.2
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499-A, Block 1: Key Fields
Instructions pg 10 & Appendix B
Local Reseller. — provides local exchange or fixed telecommunications services by reselling
services of other carriers.
Common Reporting Lines 404.1, 404.2, 404.3, 405, & 406
Non-Interconnected VoIP Provider. — Provides non-interconnected VoIP service, which is a
service that (i) enables real-time voice communications that originate from or terminate to the
user’s location using Internet protocol or any successor protocol and (ii) requires Internet protocol
compatible customer premises equipment, but (iii) is not an interconnected VoIP service.
Common Reporting Lines 418.4
Operator Service Provider (OSP). — serves customers needing the assistance of an operator to
complete calls, or needing alternate billing arrangements such as collect calling.
Common Reporting Line 413
Paging and Messaging. — provides wireless paging or wireless messaging services. This
category includes the provision of paging and messaging services by resale.
Common Reporting Line 409
Payphone Service Provider. —provides customers access to telephone networks through
payphone equipment, special teleconference rooms, etc. Payphone service providers also are
referred to as payphone aggregators.
Common Reporting Lines 306, & 407
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499-A, Block 1: Key Fields
Instructions pg 10 & Appendix B
Prepaid Calling Card Provider. — Provides prepaid calling card services by selling prepaid
calling cards to the public, to distributors or to retailers. Prepaid card providers provide consumers
the ability to place long distance calls without presubscribing to an interexchange carrier or using
a credit card. Prepaid card providers typically resell the toll service of other carriers and determine
the price of the service by setting the price of the card, assigning personal identification numbers
(PINs) and controlling the number of minutes that the card can be used for. Companies who
simply sell cards created by others are marketing agents and do not file.
Common Reporting Line 411
Private Service Provider. — Offers telecommunications to others for a fee on a non-common
carrier basis. This would include a company that offers excess capacity on a private system that it
uses primarily for internal purposes. This category does not include SMR or Satellite Service
Providers.
Common Reporting Lines 305, 312, 406, & 415
Satellite Service Provider. — Provides satellite space segment or earth stations that are used
for telecommunications service.
Common Reporting Lines 313 & 416
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499-A, Block 1: Key Fields
Instructions pg 10 & Appendix B
Shared-Tenant Service Provider /Building LEC. — Manages or owns a multi-tenant location
that provides telecommunications services or facilities to the tenants for a fee.
Common Reporting Lines 404.1, 404.2, 404.3, 405, & 406
SMR (dispatch) (Specialized Mobile Radio Service Provider). — Primarily provides dispatch
services and mobile services other than wireless telephony. While dispatch services may include
interconnection with the public switched network, this category does not include carriers that
primarily offer wireless telephony. This category includes LTR dispatch or community repeater
systems.
Common Reporting Line 409
Stand-Alone Audio Bridging Provider /Integrated Teleconferencing Service Provider. —
Allows end users to transmit a call (using telephone lines), to a point specified by the user (the
conference bridge), without change in the form or content of the information as sent and received
(voice transmission).
Common Reporting Line 417
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499-A, Block 1: Key Fields
Instructions pg 10 & Appendix B
Toll Reseller. — Provides long distance telecommunications services primarily by reselling
the long distance telecommunications services of other carriers.
Common Reporting Lines 414.1 & 415
Wireless Data. — Provides mobile or fixed wireless data services using wireless technology. This
category includes the provision of wireless data services by resale.
Common Reporting Lines 305, 312, 406, & 415
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499-A, Block 1: Key Fields
Instructions pg 10

Line 107 - FCC Registration Number (FRN), also known as CORES ID
The FRN is a ten-digit number that includes a check-digit and is used to identify an
entity within all Commission Licensing/Filing systems and the Commission’s Revenue
Accounting Management Information System (RAMIS). The number is assigned by
the Commission Registration System (CORES). For more information, see
https://fjallfoss.fcc.gov/coresWeb/publicHome.do.
ALL FILERS MUST LIST THEIR FRNs ON THE FORM!!!
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499-A, Block 2-A: Key Fields
Instructions pages 10-11

Lines 203–206 - List person who completed this worksheet
– First and Last name
– Telephone, Fax and E-mail (non generic)*

Line 208 - Billing address and contact person
– Invoices for TRS, NANPA, LNP & USF will be sent to this address
– Need billing contact first and last name
– If a contributor wishes invoices for the various programs to be sent to different
addresses or contacts, a written request is required (Alternative Billing Contact
Sheet)

Line 208.1 – E-mail address where ITSP regulatory fee bill should be sent
*Upon completion of the 499 form the E-File system will automatically create an E-File user
account for the preparer. USAC will only create accounts for user specific email address.
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499-A, Block 2-B: Key Fields
Instructions pg. 11

Lines 209-218 D.C. Agent For Service of Process per 47 U.S.C. § 413
– Every common carrier, interconnected VoIP provider, and non-interconnected
VoIP provider with interstate end-user revenues subject to TRS contributions,
that is subject to the Act “shall designate an agent in the District of Columbia” for
service of process. 47 C.F.R. § 413; see 47 C.F.R. § 1.47(h)
– There are no requirements that an agent for service of process be a law firm or
agency business. It can be any person that has agreed to serve as the agent.
The preferred agent could, for example, be a specific individual employed by the
company.
NOTE:
Carriers must notify the FCC within one week if their DC or alternate agent changes.
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499-A, Block 3 & 4: Gross Billed Revenue
Instructions pg. 12-14

Gross billed revenues consist of total revenues billed to customers during the filing
period with no allowances for uncollectibles, settlements, or out-of-period
adjustments.

Revenue is reported on Lines 303–314 and 403–418

Companies must break out the revenue in three ways.
– Assign gross billed revenues to reporting categories, which includes allocating
revenues from bundled services between telecommunications and nontelecommunications components.
– Attribute telecommunications revenues derived from sales to contributing
resellers (carrier’s carrier, Block 3) or from sales to end users (end user, Block
4).
– Apportion telecommunications revenues between the intrastate, interstate, and
international jurisdictions.
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499-A, Block 3 & 4: Assigning Revenues
Among Reporting Categories
Instructions pg. 14

The Form 499-A requires revenue categorized as fixed local, mobile, toll services, or
other.

If revenue category breakout cannot be determined directly from corporate books of
account or subsidiary records, filers may provide on the Worksheet a good-faith
estimate of the breakout. Good-faith estimates should be based on information that is
current for the filing period.

Later in the presentation, we will review these specific types of revenue and highlight
their appropriate placement on the Form 499-A.
– Fixed Local
– Originating & Terminating Traffic
– Private Line
– Payphone
– Mobile
– Interconnected VoIP
– USF surcharges & support
– Prepaid
– Long Distance
– Non-telecommunications
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499-A, Block 3 & 4: Attributing Revenues as
Carrier’s Carrier or End User
Instructions pgs. 21-22

Reseller revenue is defined by the instructions as revenue from a customer that:
–
–

Each filer should have documented procedures to ensure that it reports as “revenues
from resellers” in Block 3 only revenues from entities that reasonably would be
expected to contribute to support universal service. The procedures should include:
–
–
–

(1) incorporates purchased telecommunications services into its own telecommunications
offerings; and
(2) can reasonably be expected to contribute to federal universal service support
mechanisms based on revenues from such offerings when provided to end users.
Maintaining the following information on resellers: Filer 499 ID; legal name; address; name of
a contact person; phone number of the contact person
Annual certification by the reseller
Evidence of the filer’s use of the FCC’s website to validate the contributor status of the
reseller. http://fjallfoss.fcc.gov/cgb/form499/499a.cfm.
Revenue that does not qualify for this category is End User, reportable in Block 4.
NOTE:
If the reseller company that a wholesale company is billing qualifies for the USF de minimis exemption,
the revenue received from this reseller must be treated as end-user, and be reported in Block 4 by the
wholesaler. The company may also deduct this revenue from their TRS, NANPA & LNP contribution base
by reporting these amounts on Line 511.
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499-A, Block 3 & 4: Apportioning Revenues between
Interstate & International Jurisdictions
Instructions pages 22-25

Column (a) = Intrastate Revenue + Column (d) + Column (e)
– Intrastate is not explicitly reported on the 499-A
– Column (d) is interstate, and Column (e) is international

Jurisdiction is based upon traffic or simply the originating and terminating points of
the final product.
– If John Smith makes a phone call from Maryland to California that call and all of
the component s of that call are interstate.

Revenues from services offered under interstate tariffs, such as revenues from
federal subscriber line charges and from federally tariffed LNP surcharges, should be
identified as interstate revenues.

Where possible, filers should report their amount of total revenues that are interstate
and international by using information from their books of account and other internal
data reporting systems.

Good Faith Estimates - If interstate and international revenues cannot be determined
directly from corporate books of account or subsidiary records, filers may provide on
the Worksheet good-faith estimates of these figures.
– Most common good faith estimates are based on traffic reports.
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Fixed Local– Carrier’s Carrier
Instructions pg. 14-17
Wholesale Local Revenues
303.1 – Monthly service, local calling, connection
charges and other local exchange service
303.2 – Local Resale includes PICC charges
imposed on carriers
*Do not report any revenue here if you do not
have the Filer Id and a current reseller
certification for your customer- See Fixed LocalEnd User.
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Fixed Local – End User
Instructions pages 14 - 17
Line 404 — Monthly service, local calling including message and local toll charges, connection
charges, vertical features, and other local exchange services should include the basic local service
revenues except for local private line revenues, special access revenues, and revenues from
providing mobile or cellular services. These lines should include charges for optional extended area
service, dialing features, local directory assistance, added exchange services such as automatic
number identification (ANI) or teleconferencing, LNP surcharges and connection charges.
Line 404.1 & 404.2 — Revenues from Local/Long
Distance Bundle Plans. (ex. $50 for unlimited US
Calling)
Line 404.3 — Revenues from Local Only Plans.
Line 405 should include charges to end users specified in access tariffs,
such as tariffed subscriber line charges and PICC charges levied by a
local exchange carrier on customers that are not presubscribed to an
interexchange carrier (i.e., a no-PIC customer).
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Fixed Local Interstate Breakout
Instructions pages 14 - 17
The federal subscriber line charges (Line 405) typically represent the interstate portion of fixed local
exchange service; these amounts are separate from toll revenues and correspond to the revenues
received by incumbent telephone companies to recover part of the cost of networks that allow
customers to originate and terminate interstate calls. Filers without subscriber line charge revenue
must identify the interstate portion of fixed local exchange service revenues in column (d) of the
appropriate line 404.1–404.5.
NOTE:
There is no exception given for carriers, including Competitive Local
Exchange Carriers (CLECs), to the requirement to determine and report the
interstate portion of fixed local exchange service revenues.
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Fixed Local Interstate Breakout

Fixed Local Revenues - USAC suggests that one of the following methods could be
used to determine the interstate portion of fixed local exchange service revenues:
•
•
•
•
Use the Subscriber Line Charge (SLC) of the Incumbent LEC and apply it against the
number of fixed local exchange lines for the given period.[1]
Similar to the above but since overall prices may differ between carriers, derive an interstate
percentage based on the Incumbent LEC’s SLC as compared to its fixed local rate and apply
it against your company’s fixed local exchange revenues.
Use the national average percentage of the fixed local exchange revenues from calendar
year 2009 reported as interstate by the Five Holding Companies With Most End-User
Revenues published in the Telecommunications Industry Revenue Report found at
http://transition.fcc.gov/Daily_Releases/Daily_Business/2011/db0513/DOC-306567A1.pdf. 2
Perform a traffic study.
1]
In the Matter of Cost Review Proceeding for Residential and Single-Line Business Subscriber Line Charges (SLC) Caps, CC Dockets 96-262,
94-1, Order, FCC 02-161, 17 FCC Rcd 10868, n.8 (2002) (“Although the Commission has, in many instances chosen not to regulate the rates
charged by competitive LECs, including SLCs, we note that competitive LECs may look to the SLCs assessed by incumbent LECs as a
benchmark in setting their own SLCs.”).
[2] An average of 16.2% was derived from the fixed local service and SLC revenues shown on Table 6 of the report as
follows: ($17+$5,547)/($28,601+$5,673)=.162. Dollar amounts in Millions.
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Originating & Terminating Traffic
Instructions pg. 15
Line 304 should include per–minute charges for
originating or terminating calls, such as CABS
revenue and Inter-carrier Compensation.
*Do not include international settlement or
settlement-like receipts or transiting fees from
international toll services- Use Line 418.
NOTE:
Report gross revenues and do not deduct or net payments to carriers for
origination or termination of traffic on their networks.
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Private Line- Carrier’s Carrier
Instructions pages 16 & 19
Private line and special access service should include
revenues from providing local services that involve
dedicated circuits, private switching arrangements,
digital subscriber lines, and/or predefined transmission
paths. (ex. T1, Frame Relay, and Private lines)
Line 305 Local Private Line Service (with both A & Z
locations within the basic local service area.)
Line 312 LD Private Line Service (with A & Z locations
in different basic local service areas.)
*Do not report any revenue here if you do not have
the Filer Id and a current reseller certification for
your customer- See Private Line- End User.
NOTE:
The revenues from special access lines bundled with and charged as part of a toll
service should be reported on the appropriate toll service line.
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Private Line- End User
Instructions pages 16 & 19
Private line and special access service should include
revenues from providing local services that involve
dedicated circuits, private switching arrangements,
digital subscriber lines, and/or predefined transmission
paths. (ex. T1, Frame Relay, and Private lines)
Line 406 Local Private Line Service (with both A & Z
locations within the basic local service area.). Line 406
includes all revenue from broadband service (including
the transmission component of wireline broadband
Internet access service) provided on a common carrier
basis.
Line 415 LD Private Line Service (with A & Z locations
in different basic local service areas.)
NOTE:
If over 10% of the traffic carried over a private or WATS line interstate, then all the revenue for
that private line must be reported as 100% interstate. The best way to determine how a private
line should be treated would be through a customer certification regarding the nature of the
traffic carried over the private line. (MTS and WATS Market Structure, Amendment of Part 36 of the Commission’s
Rules and Establishment of a Joint Board, CC Dockets Nos. 78-72 and 80-286, Recommended Decision and Order, 4 FCC Rcd 1352
(¶ 3,7) (1989).
NOTE:
The FCC has defined internet traffic to carry more than 10% interstate.
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Payphone
Instructions pg. 16
Line 306 should include revenues
received from carriers as payphone
compensation for originating toll
calls. (dial-around)
Line 407 should include revenues received from
customers paid directly to the payphone service
provider, including all coin-in-the-box revenues.
Do not deduct commission payments to premises’
owners.
NOTE:
A good way to determine the interstate revenue amount is by looking at the phone
bills from your underlying carrier for your pay phones. The interstate revenue
reported on line 407 typically is under 20%.
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Mobile Service
Instructions pages 17 & 23
Line 309 — Revenues for all mobile service provided
to contributing resellers, including revenues received
from another carrier for roaming service provided to
customers of that carrier. *Do not report any revenue
here if you do not have the Filer Id and a current
reseller certification for your customer- See Block
4 Lines below.
Line 410 — Revenues for mobile service provided to
end users, including message charges, any
roaming charges assessed on customers and local
directory assistance charges.
Line 409 — Revenues for mobile service provided
to end users, including monthly charges, activation
fees, service restoration, and service order
processing charges, etc.
Itemized toll charges to mobile service customers
should be included in the Lines 413 or 414, as
appropriate.
The FCC provides the following safe harbor percentages of interstate revenues associated with Line
309, Line 409, and Line 410:
37.1% of cellular and broadband PCS telecommunications revenues
12.0% of paging revenues
1.0% of analog SMR dispatch revenues
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Interconnected VoIP
Instructions pages 14-15, 18-19 & 24
Line 303 — Wholesale VoIP Revenues
*Do not report any revenue here if you do not have
the Filer Id and a current reseller certification for
your customer- See Block 4 Lines below.
Line 404.4 — Revenues from Local service provided
via interconnected VoIP service offered in
conjunction with a broadband connection.
Line 404.5 — Revenues from Local service provided
via interconnected VoIP service offered
independent of the broadband connection.
*Revenue from bundled local/long distance plans
should be reported here
Line 414.2 — Separately billed revenue for ordinary
long distance provided to end users using
interconnected VoIP.
The FCC provides a 64.9% safe harbor percentage of interstate revenues for interconnected VoIP
telecommunications associated with Line 303.2, Line 404.4, Line 404.5, and Line 414.2. Interconnected
VoIP providers not reporting based on the safe harbor must make a similar allocation as well as
determine the appropriate portion of revenues to allocate to interstate and international toll service.
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Use of Safe Harbors
Instructions pages 23-24

Safe harbor percentages may not be applied to universal service pass-through
charges, fixed local, itemized toll charges.

Wireless telecommunications providers and interconnected VoIP providers that
choose to avail themselves of these safe harbor percentages for interstate revenues
may assume that the FCC will not find it necessary to review or question the data
underlying their reported percentages.

All affiliated wireless telecommunications providers and interconnected VoIP
providers must make a single election for each type of safe harbor.

Annual revenues reported on the FCC Form 499-A should reflect the filer’s reporting
of revenues in each quarter on FCC Form 499-Q.
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Universal Service Support
Instructions pg. 17
Line 308 — Universal service support revenues should
include all amounts that filers receive as universal
service support from either states or the federal
government. Includes revenues received as cash or
as a credit against contributions.
*Do not include charges or credits for subsidized
services provided to schools, libraries, and rural
health care providers. Such charges are properly
reported as end user revenue.
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USF Surcharges
Instructions pg. 19
403 – Itemized charges levied by the reporting entity in order to recover
contributions to state and federal universal service support mechanisms
should be classified as end-user billed revenue.
NOTE:
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If the surcharge reported on line 403 is
to recover federal USF costs, the federal
figure should be reported as either
interstate or international, as appropriate.
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Prepaid Calling Cards
Instructions pages 17-18
Line 411 — Revenues from prepaid calling
cards provided either to customers,
distributors or to retail establishments.
Prepaid card includes prepaid service where
the customer utilizes the service provider’s
switching platform and a personal
identification number (PIN) for purposes of
verification and billing, even if the customer
does not receive a physical card.
NOTE:
Gross billed revenues should represent the amounts actually paid by end user
customers and not the amounts paid by distributors or retailers, and should not be
reduced or adjusted for discounts provided to distributors or retail establishments. For
purposes of completing this Worksheet, prepaid card revenues should be recognized
when end–user customers purchase the cards. The most common way is to recognize
revenue when the card is activated.
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Long Distance
Instructions pages 18-19
Line 311, Line 412, and Line 414 — Filers should report ordinary long distance revenues on these
lines, including revenues from most toll calls placed for a fee and flat monthly charges billed to
customers, such as account maintenance charges, PICC pass-through charges, and monthly
minimums.
Line 311 — Ordinary long distance provided to
contributing resellers. *Do not report revenue
here if you do not have a Filer ID and current
reseller certification for your customer. See
Block 4 Lines below.
Line 414.1 — Ordinary long distance provided to
end users using non-interconnected VoIP
technologies, including toll service that employs
Internet Protocol but that is not provided on an
interconnected VoIP basis.
Line 414.2 — Separately billed revenue for
ordinary long distance provided to end users
using interconnected VoIP.
NOTE:
Telecommunications providers should report international settlement revenues
from traditional settlement transiting traffic on Line 418 of the Worksheet.
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Other Long Distance
Instructions pages 18-19
Line 413 — Operator and toll calls with alternative
billing arrangements should include all
calling card or credit card calls, person-to-person
calls, and calls with alternative billing
arrangements such as third–number billing,
collect calls, and country-direct type calls that
either originate or terminate charges in a U.S.
point. These lines should include all charges from
toll or long distance directory assistance.
Line 416 — Satellite services should contain
revenues from providing space segment service
and earth station link-up capacity used for
providing telecommunications or
telecommunications services via satellite.
Line 417 — should include toll teleconferencing.
The associated carrier’s carrier revenue lines for this revenue category are 310, 313, and 314. *Do
not report any revenue here if you do not have the Filer Id and a current reseller certification
for your customer- See Block 400 Lines above.
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Non-Telecommunications
Instructions pg. 20

What is Non-Telecommunications Revenue?
– Revenues that are not derived from telecommunications (i.e. rent or sale of
equipment)
– Revenues that are derived from telecommunications related functions, but should
not be included in the universal service or other fund contribution bases

A listing of non-telecommunications examples is available in the instructions.
Line 418.4 —.The new line items for the noninterconnected VOIP, this is the only 418 line items
that required the interstate and international
percentage
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End User Summary Totals
Instructions pg. 25
Line 419 – Gross billed revenues from all sources
[Lines 303 through 314 plus Lines 403 through 418]
Line 420 – Gross universal service contribution base
amounts [Lines 403 through 411 plus Lines 413
through 417]
NOTE:
NANP, & LNP all use the gross universal service contribution base amounts
reported on line 420 to calculate their filer contributions.
NANP - Line 420(a) + Line 412(a) – Line 511(a)
LNP - (Line 420(a) + Line 412(a) – Line 511(a)) * % of end-user revenues shown on Lines
503 through 509
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Bad Debt
Instructions pages 25-26
Line 421 — Show the uncollectible revenue/bad debt
expense associated with gross billed revenues
amounts reported on Line 419. In addition, for those
using billed revenues, this line may include
redeemed credits.
Line 422 — Show the portion of the uncollectible
revenue/bad debt expense reported on Line 421 that
is associated with just the universal service
contribution base amounts reported on Line 420.
Line 423 Net universal service contribution
base revenues [Line 420 minus line 422]
NOTE:
Filers that maintain separate detail of uncollectibles
by type of business should rely on those records in
determining the portion of gross uncollectibles
reported on Line 421 that should be reported on Line
422. Filers that do not have such detail should make
such assignments in proportion to reported gross
revenues.
USAC will use the revenues on Line 423 (d+e) for the 499 A/Q True-Up
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Officer Certification
Instructions pg. 27
 An officer of the company must certify to the accuracy of the Form 499-A reporting.
 The e-mail address may not be generic. USAC will establish an E-file account for the
officer using the email address, so that future filings may be certified online.
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2012 499 A/Q True Up
www.usac.org
www.usac.org
2012 A/Q True-Up
Example - 499 Filings
Interstate Revenue
(Line 423D)
2012 499A
$2,377,064
International Revenue
(Line 423E)
+
Interstate Revenue
(Line 120B)
$19,218
Contribution Base
=
International Revenue
(Line 120C)
$2,396,282
Contribution Base
Nov 09 499Q
$621,080
+
$7,495
=
$628,575
Feb 10 499Q
$603,005
+
$4,978
=
$607,983
May 10 499Q
$623,264
+
$4,627
=
$627,891
Aug 10 499Q
$639,772
+
$4,211
=
$643,983
$2,487,121
+
$21,311
=
$2,508,432
2010 499Q Contribution Base
2010 Avg. Contribution & Circularity Factors
Avg. of 2 highest FCC contribution Factors
.1540
Avg. of 2 lowest FCC Contribution Factors
.1465
Avg. of 2 FCC Circularity Factors associated with 2 high FCC Contribution Factors
.1337945
Avg. of 2 FCC Circularity Factors associated with 2 low FCC Contribution Factors
.1289515
Avg. of all FCC Contribution Factors
.15025
Avg. of all FCC Circularity Factors
.131373
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2012 A/Q True-Up
Step 1
 The first step in the True Up is to determine whether or not the company is de
minimis for purposes of the A/Q True Up using the following formula:
(499A * .15025) – (499A * .15025*.131373)
– If result is < $10,000, then the contributor is de minimis, and JanuaryDecember 2010 support mechanism charges will be reversed on you July
2012 invoice.
– If result is > or = $10,000, then the contributor is NOT de minimis; continue
to step 2.
Example:
($2,396,282 * .15025) – ($2,396,282 * .15025 *.131373) = $312,741.66
$312,741.66 > $10,000
Not De Minimis
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NOTE: In CY 2011, Interstate
Revenues greater than $76,622 are
not De Minimis.
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2012 A/Q True-Up
Step 2
 The next step in the True Up is determining which FCC contribution factor, and
associated FCC Circularity factor to use in the True Up Calculation. After determining
which factor is applicable, it will be used to replace the “Average FCC Contribution
Factor*” in step 3.
– Average of 2 highest FCC Contribution Factors and the associated average FCC
Circularity Factor should be used if (499A) > (Q1 + Q2 + Q3 + Q4).
– Average of 2 lowest FCC Contribution Factors and the associated average FCC
Circularity Factor should be used if (499A) < (Q1 + Q2 + Q3 + Q4).
– Average of all 4 FCC Contribution Factors and the associated average FCC
Circularity Factor should be used if (499A) = (Q1 + Q2 + Q3 + Q4).
Example:
($2,396,282) < ($628,575 + $607,983 + $627,891 + $643,983)
Average of 2 lowest FCC Contribution Factors and the associated average FCC
Circularity Factor should be used.
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2012 A/Q True-Up
Step 3
 Using the inputs noted above, the A/Q True Up formula for calculating necessary
Support Mechanism Credits or Adjustments is:
 (499A) - (Q1 + Q2 + Q3 + Q4) = True Up Base
(True Up Base * Average FCC Contribution Factor) – (True Up Base * Average FCC
Contribution Factor * Average FCC Circularity Factor) = Quarterly Credit or
Adjustment
Quarterly Credit or Adjustment / 3 = Monthly Credit or Adjustment
Example:
($2,396,282) - ($628,575 + $607,983 + $627,891 + $643,983) = -$112,150
(-$112,150 * .1465) - (-$112,150 * .1465 * .1289515) = -$14,311
-$14,311 / 3 = -$4,770
The company will receive three equal credits of -$4,770 on its July – September
Invoices.
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Navigating E-File
www.usac.org
www.usac.org
It’s easy to use E-File!
Start at USAC’s website, www.usac.org. Click on
the words “Fund Administration”, in orange.
Then click on the
word “E-File”
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Forgotten your password? Not a problem!
Click on the “Forgot password” link to get a new one.
All you need is your first and last
names and your User ID, which is
your email address.
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1
After logging in:
Click on “Create
New Form”
Choose “499A for April 2012”
and then click on “Submit”
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2
www.usac.org
Hint:
Depending on how your browser is set up, your new
form might open in a new tab, a new window, or the
same tab, so if you don’t see it immediately, look for it.
This form opened in a new tab
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When you reach the last page, click on the “Click here to Preview and Submit
the form” button at bottom of the screen to review your completed 2012 FCC
Form 499-A filing. Click “Save Form” if you are not done.
You may need to use the scroll bar on the right to see the buttons.
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Review the form carefully!
Can’t find the buttons? Use
the scroll bar on the far right
to see the bottom of the form
To make changes, click on the
“Edit Form” button and you will
go back to the input screens to
make your changes
If everything is correct, click on the button to
the right.
• If you are a company officer the button will
say “Certify”. By clicking the “Certify”
button you are submitting and certifying
that all the information is correct. Your
filing is now considered received by
USAC and you are finished!
• If you are not the company officer the
button to right will say “Submit”. By clicking
the “Submit” you are submitting the
information to USAC, you will now need
your company officer to certify that the
information is correct.
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When your form has been certified, your filing is complete and you will
get a confirmation message. You can also print the form, sign it
manually, and mail it in.
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For support, or more information:
USAC Customer Operations
(888) 641-8722
[email protected]
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