Glossary of Terms

Any payment that should not have been made, or that was made in an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements. Improper payments are subject to IPIA and IPERA rules. USAC calculates estimates of improper payment rates via the PQA program and provides this information to the FCC.

A law passed in 2010 to amend IPIA and enhance the federal government’s practices for measuring and recovering improper payments.

A 2002 law that requires USAC to provide the FCC with accurate, timely information about improper payments to program beneficiaries. To comply, USAC created its Payment Quality Assurance (PQA) Program, which assesses specific payments made to beneficiaries in all four programs to determine if these payments were made in accordance with FCC rules. Using results of these assessments, USAC calculates estimates of improper payment rates and provides this information to the FCC.

A dominant local telecommunications company. This is typically the company that owns the local Public Switched Telephone Network (PSTN), including local loops, central offices, wire centers, and all wiring in between.

An RHC program request sent to RHC applicants that seeks information, clarification, or missing documentation. RHC applicants have 14 calendar days to respond from the date USAC sent the request; applicants may also request a 7-day extension deadline during this period. If the applicant does not respond by the deadline, USAC will render a decision based on original submitted documentation or the form may be denied.

The RHC staffer responsible for confirming that the FCC form and supporting documentation submitted by the applicant is compliant with program rules. IRs are required to follow FCC approved procedures when reviewing a form.

The system of regulated payments among carriers to compensate each other for the origination, transport and termination of telecommunications traffic. In 2011, the FCC adopted rules requiring incumbent carriers to reduce many of these switched access rates over a multi-year period. Carriers are allowed to recover a decreasing portion of revenue lost due to reductions in switched access rates through an “Access Recovery Charge” (ARC) on customer bills. More information is available on USAC’s ICC Recovery page.

Eligible equipment (such as routers, switches, wireless access points, and cabling) considered necessary to transport or distribute broadband within one or more instructional buildings of a single school campus or within one or more non-administrative buildings that comprise a single library branch. A Category Two service type on the ESL. See also Eligible Services List.

An organization that provides services for connecting to the public internet. For the purposes of universal service support, ISPs may be referred to as service providers. See also Service Provider.

Telecommunications services that cross state or international borders. All intrastate, interstate, and international U.S. telecommunications providers are legally required to file the FCC Forms 499-A/Q.

A statement or document that (1) service providers submit to USAC after they have provided or completed service to the universal service support applicant or (2) applicants submit to USAC after they have paid for services in full. Invoices are submitted using the E-File system.

A single, one-time 120-day extension of the deadline to submit an invoice – FCC Form 472 (BEAR Form) or FCC Form 474 (SPI Form). The extension must be requested on or before the invoice deadline.

A report sent to E-Rate service providers upon USAC’s receipt of an FCC Form 474 (SPI Form). The report identifies which invoice line items were accepted, modified, and/or denied. For additional information about invoicing in E-Rate, visit the program’s Electronic Invoicing page.