Trainings & Outreach

HCLI News - May 2012

Compliance At the FCC Your Feedback

Did You Know? Deadlines

DUE	COMPONENT	DATA
June 30	ICLS	Revisions for rate-of-return carriers to projections for current and upcoming program years (voluntary).
June 30	ICLS	Final Annual Use Certifications for the upcoming program year for rate-of-return carriers and CETCs (mandatory).
June 30	IAS	Price Cap and CETCs are no longer required to file certifications.
October 1	States, federally designated ETCs	Annual section 54.314 Use Certification.

 

back to top

Now Available - Lifeline Household Worksheet
Lifeline Program

As required by the Lifeline Modernization Order (paragraphs 78-79), USAC has developed a worksheet  to assist carriers and consumers in determining whether more than one household resides at a single address. The worksheet must be completed any time more than one subscriber at a single residential address receives Lifeline service, or when a new applicant applies for Lifeline service at an address where there is already a Lifeline subscriber.

back to top

Transitioning Lifeline Payments from Projections to Actuals
Lifeline Program

In the Lifeline Modernization Order (FCC 12-11), the FCC mandated that USAC begin paying eligible telecommunications carriers (ETCs) on their actual support claims filed on FCC Form 497, rather than on USAC-generated projections. The Order specifies that USAC should begin a period of transitioning the carrier study area codes (SACs) it pays each month to payment on actual support claims, with the result that all SACs are paid on actuals no later than the disbursement that carriers receive at the end of October 2012.

ETCs that receive Lifeline support for more than one SAC should use the SAC Transition Sample Letter to inform USAC which SACs it should begin paying on actual support claims (that is, no longer include a projected payment amount), during which month of the transition. An ETC with multiple SACs can reduce the financial effect of transitioning to payment on actuals by having USAC begin paying some SACs on actual support claims each month, over a four month period, rather than eliminating projections for all SACs during the same month.

The SAC Transition Sample Letter is due to USAC by June 1. If a company with multiple SACs fails to provide this information to USAC, the Order directs USAC to select which SACs to transition each month. USAC will transition an ETC's SACs proportionately to an ETC's monthly disbursements so that the ETC will not experience the entire transition during one month. USAC will also inform the ETC which SACs it has selected to be moved to actual payments during which months.

back to top

Transition Period for Lifeline Rate Beginning with April Support Claims
Lifeline Program

The FCC established a transition period in a Public Notice (DA 12-689) released May 1, 2012, during which time eligible telecommunications carriers (ETCs), at their option, can claim either the new $9.25 rate or continue to claim Tiers 1 through 3, as appropriate.

Therefore, beginning with Lifeline support claims filed on FCC Form 497 for data month April 2012, ETCs can claim either a flat rate of $9.25, or they can use Tiers 1 through 3 to claim support. Carriers should continue to use the existing version of FCC Form 497 during this transition period when either rate is acceptable. Carriers claiming the flat $9.25 rate should enter this amount on Line 5 of FCC Form 497.

Beginning with data month August 2012, all carriers will be required to claim the flat rate of $9.25 per subscriber. Also, beginning in August 2012, carriers will be required to submit their support claims on a new version of FCC Form 497, which will be available on USAC's website prior to that time. View Frequently Asked Questions (FAQs) about filing FCC Form 497.

back to top

Effective Dates for New Lifeline Program Rules
Lifeline Program

The FCC announced the effective dates of Lifeline rules that required data collection approvals from the Office of Management and Budget in a Public Notice (DA 12-689) released May 1, 2012.

The following rules are effective May 1, 2012:

54.202(a) - Required Showings for ETC Designation
54.401(d) - Required Filings With Administrator for State ETC Designations
54.403 - Lifeline Support Amount
54.404 - National Lifeline Accountability Database (excluding carrier obligations)
54.405 - Carrier Obligation to Offer Lifeline (except for portions of section 54.405(c) (Required Disclosures) and section 54.405(e)(4) (De-enrollment for failure to re-certify)).
54.407 - Requirements for Obtaining Reimbursement and Usage Requirement
54.416 - Annual ETC Certifications
54.417 - Recordkeeping Requirements
54.420(b) - Audit Requirements for New ETCs
54.422 - Annual Reporting Requirements

The following rules are effective June 1, 2012:

54.410(a)-(f) - Subscriber Eligibility Determination and Certification

back to top

USF Reporting Rules Effective May 8; ETC Annual Reports Due July 2
High Cost Program

The FCC received Office of Budget and Management (OMB) approval of some of its data collection revisions resulting from the universal service reform order (FCC 11-161) and published a Federal Register notice making those rules (or parts of rules) effective as of May 8. Of particular importance is that all eligible telecommunications carriers (ETCs) must file their annual reports for Sections 54.313(a)(2) through (a)(6) and (h) by July 2 with the FCC, USAC, and the relevant state commission or tribal authority, as appropriate.

Below is a section-by-section summary of rules that are effective as of May 8 based on OMB approval:

54.312(b)(3): Notifications and certifications concerning Connect America Fund Phase I incremental support. 

• Carriers can elect to accept or decline incremental support.
• Carriers must provide notice to USAC and the FCC stating the amount of incremental support it wishes to accept and identify the areas where its broadband service will meet its deployment obligation.
• Carriers must notify USAC and the FCC if they decide to accept or decline incremental support within 90 days of being notified by the FCC of any incremental support eligibility.
• Carrier must certify the locations to be served to satisfy the deployment obligation are shown as unserved by fixed broadband; that these locations are not part of existing capital improvement plan, and the support will not be used to satisfy any merger commitment or similar regulatory obligation.

54.313(b): Annual reporting requirements for recipients of incremental Phase I support:

• Two years after filing a notice of acceptance of funding, companies must certify they have deployed broadband service to at least two-thirds of the required locations at the required speeds and functionality in a manner reasonably comparable to those in urban areas.
• Three years after filing a notice of acceptance of funding, companies must certify they have deployed broadband service to all required locations at the required speeds and functionality in manner reasonably comparable to those in urban areas.

54.314: Certification of support for eligible telecommunications carriers (ETCs).

• State certified ETCs for the High Cost Program must file the state commission's certification to USAC and the FCC that all of the prior and future year's federal high-cost support was used in a manner compliant with the regulations.
• Carriers not receiving ETC certification from a state commission must file a certification to USAC and the FCC that all of the prior and future year's federal high-cost support was used in a manner compliant with the regulations.

54.320(b): Recordkeeping for ETCs that receive high-cost support.

• Must retain all records required to demonstrate the support received was consistent with the universal service High Cost Program rules. 
• Documentation must be maintained for at least 10 years from the receipt of funding.
• Applies to all covered documents in existence as of May 8, 2012, the effective date of section 54.320(b). 

54.307 (b) and (c): Line filing requirements for most competitive ETCs are no longer required. Competitive ETCs serving remote areas of Alaska that are subject to the delayed phasedown will continue to file.

54.313 (a)(2) - (a)(6) and (h): Annual reporting requirements for high-cost recipients. By July 2, 2012, any recipient of high-cost support, that has not already filed a report, shall provide the following, with respect to their provision of voice service:

• State-designated ETCs that were not required to collect the following information during 2011 are not required to report it in 2012:
• A detailed listing of any reportable service outages in the 2011 calendar year;
• The number of requests for service from potential customers within the recipient's service areas that were unfulfilled during the 2011 calendar year;
• The number of complaints per 1,000 connections (fixed or mobile) in the 2011 calendar year;
• Certification that it is complying with applicable service quality standards and consumer protection rules;
• Certification that the carrier is able to function in emergency situations; and
• All of their rates for residential local voice service, as well as state fees (state subscriber line charges, state universal service fees and mandatory extended area service charges). 
• Carriers must report all rates and state fees, to the extent the sum of those rates and state fees are below the local urban rate floor, and the number of lines for each rate specified. 
• Carriers shall report lines and rates in effect as of June 1.
• For the 2012 filing, the local urban rate floor is $10.

back to top

FCC Announces Mobility Fund Phase 1 Auction Rules and Requirements
High Cost Program

The Federal Communications Commission (FCC) announced the competitive bidding procedures for the auction of Mobility Fund Phase I support in a May 2 news release. The Mobility Fund will award up to $300 million for winning bidders who must deploy either 3G service within two years or 4G service within three years of the award, the FCC said. The auction will take place September 27, 2012, and is designated as Auction 901 by the FCC.

Bidders will indicate the amount of one-time support they need to deploy service meeting rigorous performance standards in unserved areas within the required timeframe, the FCC said. Support will be awarded based on the lowest bid amounts submitted, but will not be awarded to more than one provider per area, it added.

View the Mobility Fund Phase 1 Auction Notice and Filing Requirements.

This public notice:

• Establishes a window for the filing of short form applications that opens June 27, 2012, and closes at 6 p.m. July 11, 2012;
• Identifies the final list of census blocks eligible for Mobility Fund Phase I support;
• Makes support possible for 98 percent or more of the total road miles in eligible census blocks in every state and territory;
• Provides that Auction 901 will be a single round, sealed bid auction;
• Provides for bidding on a census tract basis, except in Alaska, where bidding will be permitted on individual eligible census blocks; and
• Requires that each winning bidder provide coverage, consistent with the performance requirements of the rules adopted in the USF/ICC Transformation Order, to a minimum of 75 percent of the road miles in each census tract for which it wins support, calculated as the total of the road miles in the eligible census blocks in the tract.

View an interactive map of areas eligible for Phase 1 support. Additional information about the Mobility Fund Phase I Auction is available at the Auction 901 website.

back to top

FCC Launches Lifeline Broadband Pilot Competition
Lifeline Program

The Federal Communications Commission (FCC) launched a competition to discover the best ways to increase broadband adoption rates among low-income Americans, it said in an April 30 public notice. The competition is funded by the newly created “Broadband Adoption Lifeline Pilot Program,” it said.

This competition uses $25 million in savings from major reforms earlier this year of the Lifeline program to launch pilot projects across the country to test best practices around issues of cost, digital literacy, and relevancy. A Public Notice (DA 12-683) released April 30 announced criteria for the competition and a deadline of July 2, 2012 for applications. Winners will begin their year-long projects in the fall of this year.

back to top

FCC Releases Further Notice on USF Contribution Reform
High Cost and Lifeline Program

The FCC released a Further Notice of Proposed Rulemaking (FCC 12-46) on universal service fund (USF) contribution reform April 30, 2012. The notice seeks comment on:

• What services and service providers should contribute to the fund
• How contributions should be assessed
• How to reduce the cost, promote transparency, and increase clarity of the contribution system
• Whether consumers could benefit from increased transparency and limitations on how providers recover their USF costs
• Appropriate transition periods for reforms. 

back to top

Reminder: Filing Requirements
High Cost Program
Due June 30

• Rate-of-return carriers can voluntarily file Interstate Common Line Support (ICLS) revisions to projections for current and upcoming program years (voluntary)
• Rate-of-return carriers and competitive ETCs must file their final ICLS Annual Use Certifications for the upcoming program year (mandatory)
• Price Cap and CETCs are no longer required to file Interstate Access Support (IAS) certifications.

Due October 1

• States and federally designated ETCs must file an Annual Section 54.314 Use Certification (mandatory).

back to top

You can sign up to receive alerts of the latest news for High Cost and Lifeline from USAC by subscribing to our RSS feed.

back to top

How do you like USAC's new website?

Provide your feedback on the new website and suggest additional information to include. Contact Us!

back to top