Glossary of Terms

Terms	Program	Definitions
1st Demand Payment Letter	E-Rate	The initial letter sent by USAC to recover funds from applicants or service providers that have been disbursed funds in violation of program rules or requirements. This letter comes after a COMAD or RIDF letter has been sent describing the reason for the recovery.
28‑Day Waiting Period	E-Rate	The minimum time period an applicant is required to wait after posting the FCC Form 470 before entering into any contract with a service provider and submitting the FCC Form 471.
2nd Demand Payment Letter	E-Rate	A follow-up request for payment issued 31 days after the 1st Demand Payment Letter to the impacted party or parties who failed to take action to return funds disbursed in violation of program rules or requirements. As of the date of the second letter, recipients are placed on Red Light status. See also Red Light Rule and Red Light status.
498 Company Officer	E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers	The officer of a service provider company who is authorized to certify that data set forth in the FCC Form 498 is true, accurate, and complete. The 498 Company Officer has access to certify forms through USAC’s E-File system and occupies a position specified in the company’s corporate by-laws (or partnership agreement): typically, president, vice president of operations, vice president of finance, CFO, comptroller, treasurer, or a comparable position. If the reporting entity is a sole proprietorship, the owner must serve as the certifier.
498 ID/Service Provider Identification Number (SPIN)	E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers	A unique nine-digit number that USAC assigns to a service provider once that service provider has submitted the FCC Form 498 to USAC. Every service provider is required to have a 498 ID/SPIN to participate in any of the four universal service programs and receive payments from USAC. E-Rate program applicants who select the Billed Entity Applicant Reimbursement (BEAR) invoicing process also need to complete an FCC Form 498 and will receive an applicant 498 ID.
499 Company Officer	E-Rate, High Cost, Service Providers	The officer of a service provider company who is authorized to certify that data set forth in the FCC Forms 499-A/Q is true, accurate, and complete. The 499 Company Officer has access to certify forms through USAC’s E-File system and occupies a position specified in the company’s corporate by-laws (or partnership agreement): typically, president, vice president of operations, vice president of finance, CFO, comptroller, treasurer, or a comparable position. If the reporting entity is a sole proprietorship, the owner must serve as the certifier.
Account Administrator	E-Rate	An EPC user who can manage users, permissions, and related entities for an organization such as a school, library, service provider, or consulting firm.
Administrative Authority	E-Rate	The relevant authority with responsibility for administration of the eligible school or library who must certify the status of the entity’s compliance with the Children’s Internet Protection Act (CIPA) in order to receive universal service support.
Allowable Contract Date (ACD)	E-Rate	The earliest date on which an E-Rate applicant can sign a contract for contracted services or enter into an arrangement for tariffed or month-to-month services with a service provider. It is calculated as at least 28 days or four weeks after the FCC Form 470 is certified.
Alternative Discount Mechanisms	E-Rate	An alternative method for schools that choose not to use NSLP participation numbers to calculate their E-Rate program discounts. Federally approved alternative discount mechanisms cannot be less stringent than the same measure of poverty established for the NSLP. See also National School Lunch Program.
Appeal	E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers	A request to reconsider a USAC decision. Any party that wishes to appeal must first do so with USAC before filing an appeal with the FCC. Once USAC has made a decision on an appeal, the party may appeal USAC’s decision to the FCC. Parties seeking a waiver of FCC rules should file an appeal directly with the FCC because USAC cannot waive FCC rules. For more information, visit USAC’s Appeals page.
Applicant	E-Rate, Rural Health Care	The entity applying for universal service support. In the RHC and E-Rate programs, an applicant may be an individual organization or a consortium composed of multiple organizations.
Audit	E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers	An examination of documentation and resources that verify the state of compliance with program rules. USAC conducts audits through the Beneficiary and Contributor Audit (BCAP) and Supply Chain Audit Program (SCAP) programs in accordance with the Generally Accepted Government Auditing Standards.
Authorized Users	E-Rate, Rural Health Care, High Cost, Service Providers	The employee(s) of a service provider company, established by the Company Officer or General Contact, authorized to enter and modify company information on FCC Forms 498 and 499 through the E-File application. For more information, visit USAC’s Entitlements Guide.
Basic Maintenance of Internal Connections (BMIC)	E-Rate	Services covering the repair and upkeep of eligible equipment inside a school of library (i.e., within the facility demarcation point). BMIC is a Category Two service type on the E-Rate program’s Eligible Services List. See also Category Two Services.
BEAR Notification Letter	E-Rate	A letter USAC sends to an E-Rate applicant and their service provider after a Billed Entity Applicant Reimbursement form (FCC Form 472) has been processed by USAC. The letter can be accessed from the EPC Newsfeed.
Beneficiary and Contributor Audit Program (BCAP)	E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers	An audit program through which USAC confirms program compliance and the amounts of recoverable funds among universal service beneficiaries and contributors. BCAP audits may be performed by USAC’s internal audit staff or a firm under contract to USAC. For more details, visit USAC’s BCAP webpage.
Bid	E-Rate, Rural Health Care	A response from a service provider (bidder) to a request for services. RHC and E-Rate program applicants request bids from service providers by posting their service needs to USAC’s website for a minimum of 28 days.
Billed Entity	E-Rate	The entity that receives the bill and pays for the supported service. A Billed Entity may be separate from the physical location receiving services.
Billed Entity Number (BEN)	E-Rate	A unique number assigned in EPC to each entity (school, library, school district, library system, or consortium) related to an application or associated funding requests. Whether the entity is a parent entity or a child entity associated to a parent BEN, each receives a distinctive billed entity number in EPC. For more information on creating, modifying, or cancelling a BEN, visit the E-Rate program’s Entity Numbers page.
Bundled Services Cost Allocation	E-Rate	The requirement that E-Rate program recipients cost-allocate non-ancillary ineligible components bundled with equipment or services eligible for E-Rate support (e.g., virtual private networks (VPNs) bundled with internet access.) See also Eligible Services List.
Category One Services	E-Rate	Services used to connect broadband or internet to eligible locations, or services that provide basic conduit access to the internet. Data transmission services and internet access are Category One services. See also Eligible Services List.
Category Two Budget	E-Rate	The five-year maximum budget of E-Rate pre-discount funds that an applicant may receive for Category Two (C2) equipment and services within a school district, independent school, library system, or independent library. The C2 budget covers a 5-year budget cycle, with the current cycle running from FY2021-FY2025. The subsequent cycle will run from FY2026-FY2030. For additional details on C2 rules, visit the E-Rate program’s Category Two Budgets page.
Category Two Services	E-Rate	Internal connections services needed to enable high-speed broadband connectivity and broadband internal connections components. Category Two includes local area networks/ wireless local area networks (LAN/ wireless LAN), internal connections components, basic maintenance of internal connections services, and managed internal broadband services. See also Basic Maintenance of Internal Connections, Managed Internal Broadband Services, and Eligible Services List.
Children’s Internet Protection Act (CIPA)	E-Rate	A law that mandates certain internet safety and filtering requirements for recipients of E-Rate program discounts for services other than telecommunications services.

1st Demand Payment Letter

E-Rate

The initial letter sent by USAC to recover funds from applicants or service providers that have been disbursed funds in violation of program rules or requirements. This letter comes after a COMAD or RIDF letter has been sent describing the reason for the recovery.

28‑Day Waiting Period

E-Rate

The minimum time period an applicant is required to wait after posting the FCC Form 470 before entering into any contract with a service provider and submitting the FCC Form 471.

2nd Demand Payment Letter

E-Rate

A follow-up request for payment issued 31 days after the 1st Demand Payment Letter to the impacted party or parties who failed to take action to return funds disbursed in violation of program rules or requirements. As of the date of the second letter, recipients are placed on Red Light status. See also Red Light Rule and Red Light status.

498 Company Officer

E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers

The officer of a service provider company who is authorized to certify that data set forth in the FCC Form 498 is true, accurate, and complete. The 498 Company Officer has access to certify forms through USAC’s E-File system and occupies a position specified in the company’s corporate by-laws (or partnership agreement): typically, president, vice president of operations, vice president of finance, CFO, comptroller, treasurer, or a comparable position. If the reporting entity is a sole proprietorship, the owner must serve as the certifier.

498 ID/Service Provider Identification Number (SPIN)

E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers

A unique nine-digit number that USAC assigns to a service provider once that service provider has submitted the FCC Form 498 to USAC. Every service provider is required to have a 498 ID/SPIN to participate in any of the four universal service programs and receive payments from USAC. E-Rate program applicants who select the Billed Entity Applicant Reimbursement (BEAR) invoicing process also need to complete an FCC Form 498 and will receive an applicant 498 ID.

499 Company Officer

E-Rate, High Cost, Service Providers

The officer of a service provider company who is authorized to certify that data set forth in the FCC Forms 499-A/Q is true, accurate, and complete. The 499 Company Officer has access to certify forms through USAC’s E-File system and occupies a position specified in the company’s corporate by-laws (or partnership agreement): typically, president, vice president of operations, vice president of finance, CFO, comptroller, treasurer, or a comparable position. If the reporting entity is a sole proprietorship, the owner must serve as the certifier.

Account Administrator

E-Rate

An EPC user who can manage users, permissions, and related entities for an organization such as a school, library, service provider, or consulting firm.

Administrative Authority

E-Rate

The relevant authority with responsibility for administration of the eligible school or library who must certify the status of the entity’s compliance with the Children’s Internet Protection Act (CIPA) in order to receive universal service support.

Allowable Contract Date (ACD)

E-Rate

The earliest date on which an E-Rate applicant can sign a contract for contracted services or enter into an arrangement for tariffed or month-to-month services with a service provider. It is calculated as at least 28 days or four weeks after the FCC Form 470 is certified.

Alternative Discount Mechanisms

E-Rate

An alternative method for schools that choose not to use NSLP participation numbers to calculate their E-Rate program discounts. Federally approved alternative discount mechanisms cannot be less stringent than the same measure of poverty established for the NSLP. See also National School Lunch Program.

Appeal

E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers

A request to reconsider a USAC decision. Any party that wishes to appeal must first do so with USAC before filing an appeal with the FCC. Once USAC has made a decision on an appeal, the party may appeal USAC’s decision to the FCC. Parties seeking a waiver of FCC rules should file an appeal directly with the FCC because USAC cannot waive FCC rules. For more information, visit USAC’s Appeals page.

Applicant

E-Rate, Rural Health Care

The entity applying for universal service support. In the RHC and E-Rate programs, an applicant may be an individual organization or a consortium composed of multiple organizations.

Audit

E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers

An examination of documentation and resources that verify the state of compliance with program rules. USAC conducts audits through the Beneficiary and Contributor Audit (BCAP) and Supply Chain Audit Program (SCAP) programs in accordance with the Generally Accepted Government Auditing Standards.

Authorized Users

E-Rate, Rural Health Care, High Cost, Service Providers

The employee(s) of a service provider company, established by the Company Officer or General Contact, authorized to enter and modify company information on FCC Forms 498 and 499 through the E-File application. For more information, visit USAC’s Entitlements Guide.

Basic Maintenance of Internal Connections (BMIC)

E-Rate

Services covering the repair and upkeep of eligible equipment inside a school of library (i.e., within the facility demarcation point). BMIC is a Category Two service type on the E-Rate program’s Eligible Services List. See also Category Two Services.

BEAR Notification Letter

E-Rate

A letter USAC sends to an E-Rate applicant and their service provider after a Billed Entity Applicant Reimbursement form (FCC Form 472) has been processed by USAC. The letter can be accessed from the EPC Newsfeed.

Beneficiary and Contributor Audit Program (BCAP)

E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers

An audit program through which USAC confirms program compliance and the amounts of recoverable funds among universal service beneficiaries and contributors. BCAP audits may be performed by USAC’s internal audit staff or a firm under contract to USAC. For more details, visit USAC’s BCAP webpage.

Bid

E-Rate, Rural Health Care

A response from a service provider (bidder) to a request for services. RHC and E-Rate program applicants request bids from service providers by posting their service needs to USAC’s website for a minimum of 28 days.

Billed Entity

E-Rate

The entity that receives the bill and pays for the supported service. A Billed Entity may be separate from the physical location receiving services.

Billed Entity Number (BEN)

E-Rate

A unique number assigned in EPC to each entity (school, library, school district, library system, or consortium) related to an application or associated funding requests. Whether the entity is a parent entity or a child entity associated to a parent BEN, each receives a distinctive billed entity number in EPC. For more information on creating, modifying, or cancelling a BEN, visit the E-Rate program’s Entity Numbers page.

Bundled Services Cost Allocation

E-Rate

The requirement that E-Rate program recipients cost-allocate non-ancillary ineligible components bundled with equipment or services eligible for E-Rate support (e.g., virtual private networks (VPNs) bundled with internet access.) See also Eligible Services List.

Category One Services

E-Rate

Services used to connect broadband or internet to eligible locations, or services that provide basic conduit access to the internet. Data transmission services and internet access are Category One services. See also Eligible Services List.

Category Two Budget

E-Rate

The five-year maximum budget of E-Rate pre-discount funds that an applicant may receive for Category Two (C2) equipment and services within a school district, independent school, library system, or independent library. The C2 budget covers a 5-year budget cycle, with the current cycle running from FY2021-FY2025. The subsequent cycle will run from FY2026-FY2030. For additional details on C2 rules, visit the E-Rate program’s Category Two Budgets page.

Category Two Services

E-Rate

Internal connections services needed to enable high-speed broadband connectivity and broadband internal connections components. Category Two includes local area networks/ wireless local area networks (LAN/ wireless LAN), internal connections components, basic maintenance of internal connections services, and managed internal broadband services. See also Basic Maintenance of Internal Connections, Managed Internal Broadband Services, and Eligible Services List.

Children’s Internet Protection Act (CIPA)

E-Rate

A law that mandates certain internet safety and filtering requirements for recipients of E-Rate program discounts for services other than telecommunications services.

About

Programs

Companies

Legal