Trainings & Outreach

498/499 Spotlight - August 2016


3rd Quarter 2016

In this issue...


Deadlines   |   Revenue Reporting   |   Did You Know   l   At the FCC


DUE ITEM More Details
Aug 15 Universal service contribution Making Payments
Sept 15 Universal service contribution Making Payments


True Up Process

The annual true up is the reconciliation of the previous calendar year. USAC uses data collected on the FCC Form 499-A (Annual Telecommunications Reporting Worksheet) and compares it to the projected collected end-user revenue that was reported in the quarterly FCC Form 499-Q filings. The 2016 FCC Form 499-A filing is used to reconcile calendar year 2015.


USAC sent the 2016 true up letters with July invoices. The first true up letter will be sent to the billing contact on record for your Filer ID. In the letter, the true up calculation specific to your filer ID will be outlined. If the true up results in a variance of the contribution paid, that number will be stated, along with the monthly adjustment resulting for the 3rd quarter. If applicable, different sections of the letters will address de minimis contributors, LIRE, sales, and mergers. 


If a company files a revision to their FCC Form 499-A after July, the company can request another true up be performed. Submit your request through via email to

The Bottom Line: Consolidated Filing Requirements

3rd Quarter 2016 Contribution Factor Remains 17.9 Percent

The FCC released a Public Notice (DA 16-658) announcing that the proposed universal service contribution factor for the third quarter (July-September) of 2016 will be 0.179, or 17.9 percent.


Contact Us

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Corporate entities may file a consolidated FCC Form 499-A instead of filing individual forms for each separate entity. Businesses filing on a consolidated basis must certify each year that they meet all of the following conditions:
  • A single entity oversees the management of all affiliated systems;
  • A single entity sends bills to customers identifying it (or a trade name) as the service provider, rather than identifying the individual legal entities;
  • All revenues are posted to a single general ledger;
  • If separate revenue and expense accounts exist, they are derived from one consolidated set of books and the consolidated filing must cover all revenues contained in the consolidated books;
  • Customers have a single point of contact;
  • The consolidated filer acknowledges that process served on it would represent process served on any or all of the affiliated legal entities;
  • The consolidated filer agrees to document and resolve all slamming complaints that might be served on either it or any of the affiliated legal entities;
  • The consolidated filer obtains a separate FCC Registration Number (FRN) from those assigned to its affiliated legal entities;
  • The consolidated filer acknowledges that its universal service, TRS, LNP, NANPA, and regulatory fee obligations will be based on data provided in the consolidated Worksheet filings, that it bears the responsibility of satisfying those obligations, and that all legal entities covered by the filing are jointly and severally liable for such obligations; and
  • The consolidated filer acknowledges that it: (1) was not insolvent on the date it undertook to make payments on a consolidated basis or on the date of actual payments to universal service, TRS, LNP, NANPA, and regulatory fees, and did not become insolvent as a result of such undertaking or payments; (2) was not left with unreasonably small capital as a result of such undertaking or payments; and (3) was not left unable to pay debts as they matured as a result of such undertaking or payments.
This annual certification should be filed with the USAC and must also include:
  • A list of the legal names of all the legal entities covered by the filing,
  • The FCC Form 499 Filer IDs of all the legal entities covered by the filing,
  • The consolidated filer's FRN, and,
  • For wireless carriers, a list of all radio licenses (call signs) issued to each legal entity covered by the filing.
We accept annual certifications via email or mail (please note our new address).
    Universal Service Administrative Co.
    Attn: Customer Operations
    Billing, Collections, and Disbursements
    700 12th Street, NW, Suite 900
    Washington, DC 20005
Companies filing on a consolidated basis should be aware that any penalties associated with failure to pay or underpayment of any of its obligations will be assessed on the total revenue reported on the consolidated basis, rather than on a separate legal entity basis.
During an audit, if the certification is not on file with all of the requirements met, the revenues from the entity that didn't meet the requirements will be removed from the FCC Form 499-A.
Line 112 Form Reporting
The instructions for Line 112 state that, "Consolidated filers should provide all names used by all telecommunications affiliated [sic] covered by the filing."
It is common for filers to fail to report the entities included under their consolidated FCC Form 499-A filing. It is important to remember that in addition to meeting and certifying that a filer meets the requirements to file on a consolidated basis, there is also a form reporting requirement to list the entities covered under the filing on Line 112 of the form.


The Universal Service Administrative Company offices moved effective July 12, 2016. Our new address is 700 12th St. NW, Suite 900, Washington, D.C. 20005. All phone numbers remain the same.

Invoice Request

Did you not receive your monthly contributor invoice? To request a copy of your invoice, contact the USAC Customer Operations team via email with the following information included in the body of the email: Requestor's name, Filer ID, and statement month.


If your name is not listed as an authorized user for the Filer ID, USAC cannot provide you with a copy of an invoice. Invoice requests will be processed via email within 24-48 hours of the time the request was received.

Filer ID Requests

Not every service provider needs to have a Filer ID and file the FCC Forms 499. Only companies that provide telecommunications services to other companies or to end users need to file. Companies that provide installation and hardware only, and not the services that go over the equipment, do not need to file.
Note that if a provider furnishes even a single service from the list of telecommunications services, they must file. Service providers who provide only internet services and none of the telecommunications services do not need to file, though internet providers who also provide VoIP must, because VoIP is a telecommunications service.  Here is a list of services for which providers need to file the FCC Forms 499:
  • POTS voice services
  • Interconnected VoIP services
  • Wireless telephony, including cellular and personal communications services (PCS)
  • Paging and messaging services
  • Dispatch and operator services 
  • Mobile radio services 
  • Access to interexchange service 
  • Special access 
  • Wide area telecommunications services (WATS) 
  • Subscriber toll-free and 900 services 
  • Message telephone services (MTS) 
  • Private line 
  • Telex 
  • Telegraph 
  • Video services
  • Satellite services 
  • Resale services 
  • Frame relay services 
  • Asynchronous transfer mode (ATM) services 
  • Multi-Protocol Label Switching (MPLS) services 
  • Audio bridging services

Validation of Banking Information on All New & Revised 498 IDs

USAC may request additional documentation to validate and confirm the banking information provided on a new or revised FCC Form 498 submission.
Information that may be requested to validate the banking information will consist of:
  1. The first page of a banking statement that clearly indicates the name of the entity, bank name, routing number, and account number; and/or
  2. A voided check that indicates the name of the entity, bank name, routing number, and account numbers.
Do not submit this additional documentation with your FCC Form 498 submission.
Not all FCC Form 498 submissions may require this validation. For example, if you have an existing FCC Form 498 and file a revision that does not modify the banking information, you will not be asked to validate the banking data included on the revised form.
If USAC is required to validate the banking information, you will be contacted with instructions on how to securely provide this documentation through our electronic filing system for review. Once the documentation is received, USAC will review the documents and approve the FCC Form 498 banking information. USAC will maintain your documentation only as needed to validate your banking information or as required by the FCC's records requirements. These documents will otherwise be destroyed.


498/499 Spotlight


3Q 2016