Step 4 Starting Services

In general, discounted services for a particular funding year cannot begin before July 1 of that year. Services that continue from one year to the next under a multi-year contract – or tariffed or month-to-month services provided by the same service provider as the previous funding year – are considered to start again in the new funding year because they receive a new Funding Request Number (FRN) for that year.

The one exception to the July 1 start date is advance installation of some Priority 1 components if that installation must occur before July 1 so that Priority 1 service can be received starting July 1.

When do services start?

You can start providing services before USAC has issued a Funding Commitment Decision Letter (FCDL) to you and the applicant with details of the funding commitments for the services requested. You can subscribe to receive FCDL information electronically. However, this is a business decision on your part, as USAC does not issue an FCDL until its review has been completed, and that review may result in funding being reduced or denied. Also, USAC will not pay invoices until an FCDL has been issued with a positive funding commitment.

After an FCDL has been issued and services have started, applicants file an FCC Form 486 (Receipt of Service Confirmation Form). The FCC Form 486 informs USAC that:

• Services approved for discounts have started and invoicing can begin. Note that applicants can file FCC Form 486 before services have started if they have received an FCDL, they have agreed with you that services will start in July, and they can accurately make all of the certifications on the form.
• The applicant’s technology plan, if one is required, has been approved by a USAC-certified technology plan approver. Starting with Funding Year (FY) 2011, technology plans are required for Priority 2 services only. In earlier Funding Years, requirements for technology plans applied to many Priority 1 services.
• The applicant and/or the recipients of service it represents are in compliance with the Children’s Internet Protection Act (CIPA). Note that if the funding requests are only for telecommunications services and/or Interconnected Voice over Internet Protocol (VoIP) services, CIPA does not apply.

These requirements are important to you because funding may be reduced by USAC if an applicant is found to be out of compliance with technology plan or CIPA requirements during all or part of a funding year.

Talk With Your Customers

In advance of the start of services, you and the applicants that will be receiving your services should have a conversation about the details of those services. You should also review the terms of your contract, if any, with them. In addition, you should work with applicants to determine whether they or you will invoice USAC for the discount amount of the cost of the services.

Filing Deadline

The FCC Form 486 must be certified no later than 120 days after the service start date or 120 days after the date of the FCDL, whichever is later. Filing this form late can result in a reduction in funding; the later the filing date, the greater the reduction.

FCC Form 486 Notification Letter

After USAC completes the processing of an FCC Form 486, USAC will issue an applicant version and a service provider version of an FCC Form 486 Notification Letter.

If USAC was required to adjust the service start date due to a compliance issue or a late-filed form, the service start date in the letter will be marked with an asterisk and followed by an explanation of the reason for the adjustment. Note that USAC will not provide discounts for services delivered before the service start date on record.

Non-recurring Services

Each funding year ends on June 30. Recurring services (e.g., monthly telephone or Internet service) must be delivered on or before that date for the appropriate funding year. However, non-recurring services (e.g., delivery and installation of equipment or installation of wiring) can occur through September 30.

You or the applicant can request a service delivery extension if more time is needed and the FRN was not automatically extended by USAC.

Next Step

After USAC has processed the FCC Form 486 and you have begun providing the associated services, you or the applicant can invoice USAC for the discount share of those services.