Who Must Contribute

De Minimis Exemption

A company is considered de minimis for a given calendar year when the revenue reported on the corresponding FCC Form 499-A is such that the calculated contribution to the universal service fund (USF) is less than $10,000.

A company that demonstrates a de minimis status is exempt from directly contributing to the universal service fund for a given year, but may indirectly contribute through an underlying carrier. The de minimis status is applicable only to the USF and thus does not necessarily affect a company's contribution obligation for Telecommunications Relay Services (TRS), North American Numbering Plan (NANP) and Local Number Portability (LNP).

Filing Obligations for De Minimis Companies

FCC Form 499-A: Due April 1

De minimis filers are required to submit the FCC Form 499-A. All intrastate, interstate and international providers of telecommunications within the United States, with very limited exceptions, must file the FCC Form 499-A Telecommunications Reporting Worksheet. More information is available in the FCC Form 499-A Instructions.

FCC Form 499-Q: Due Feb 1, May 1, Aug 1, Nov 1

De minimis filers are not required to submit the FCC Form 499-Q. Telecommunications carriers and other telecommunications providers should complete the table contained in FCC Form 499-Q Instructions to determine whether they meet the de minimis standard.

As outlined in both the FCC Form 499-A and FCC 499-Q instructions, USAC uses the following processes to determine de minimis status.

On the FCC Form 499-A (Annual Telecommunications Reporting Worksheet):

• FCC Form 499-A Collected Interstate and International Revenues = Revenue Base
• Line 423d + Line 423e = Revenue Base
• Estimated FCC Form 499-A Annual Contributions
• (Revenue Base * Average FCC Contribution Factor) – (Revenue Base * Average FCC Contribution Factor * Average FCC Circularity Factor) = Estimated FCC Form 499-A Annual Contribution
• If Estimated FCC Form 499-A Annual Contribution is less than $10,000, then the form is labeled as de minimis

On the FCC Form 499-Q (Quarterly Telecommunications Reporting Worksheet):

• FCC Form 499-Q Projected Collected Interstate and Projected Collected International = Revenue Base
• Line 120b + Line 120c = Revenue Base
• Revenue Base x FCC Contribution Factor = Unadjusted Contribution
• Unadjusted Contribution x FCC Circularity Factor = Circularity Deduction
• Unadjusted Contribution - Circularity Deduction = Quarterly Contribution
• Quarterly Contribution x 4 = Estimated FCC Form 499-Q Annual Contribution
• If Estimated FCC Form 499-Q Annual Contribution is less than $10,000, then the form is labeled as de minimis

Qualifying for the exemption:

• Companies must demonstrate that they are de minimis on both the current FCC Form 499-A and the current FCC Form 499-Q to be exempt from billings in that quarter.

When FCC Form 499-A is filed showing the actual revenue that had been projected quarterly, a true up will confirm the de minimis status for the year and reverse any support mechanism charges that occurred for a company that is found to have been de minimis.