Glossary of Terms

Terms	Program	Definitions
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.
Access Recovery Charge (ARC)	High Cost	A charge on customer bills that carriers use to recover part of the revenue lost to FCC-mandated reductions to switched access rates with reform of the intercarrier compensation system (the regulated payments among carriers to compensate each other for the origination, transport and termination of telecommunications traffic). More information is available on USAC’s ICC Recovery page.
Acquired Exchange Support (AEX or AES)	High Cost	The High Cost support paid to a carrier that acquires a telephone exchange eligible for funding from an unaffiliated carrier. Per-line support levels remain the same following the transfer of ownership.
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.
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.
Average Schedule Carrier	High Cost	The name given to NECA members that receive pool revenues or settlements for providing interstate telecommunications services. Revenues or settlements are calculated based on a series of FCC-approved statistical formulas that approximate the amounts that a similar cost company would receive.
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.
Chief Financial Officer (CFO)	High Cost, Service Providers	Corporate officer responsible for financial operations. Service provider company CFOs may serve as official certifiers of the accuracy of forms submitted to USAC. See also 497 Company Officer, 498 Company Officer, and 499 Company Officer.
Code of Federal Regulations (CFR)	E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers	The general and permanent rules published in the Federal Register by federal government agencies and executive branch departments. Telecommunications rules are located in Title 47 of the CFR. For specific language, see a digital version of the CFR.
Commission	E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers	A common abbreviation for the Federal Communications Commission (FCC). See also FCC.
Common Carrier	E-Rate, High Cost, Service Providers	An organization recognized by a regulatory authority (such as a state public utility commission) as providing telecommunications services to all requesting parties, or an organization that offers such services generally to the public for a fee.
Competitive Eligible Telecommunications Carrier (CETC)	High Cost	A telecommunications carrier that is certified by a state’s public utility commission or the FCC as eligible to receive High Cost support, but that is not the Incumbent Local Exchange Carrier, or ILEC (i.e. not the dominant local phone company).
Competitive Local Exchange Carrier (CLEC)	High Cost	A category of telecommunications provider created by the 1996 Telecommunications Act to open the telecom marketplace to new entrants that would compete with the dominant local phone companies known as Incumbent Local Exchange Carriers, or ILECs.
Cost Company	High Cost	A carrier participating in a High Cost legacy fund that calculates support based on carrier costs.
Detailed Audit Finding (Finding or DAF)	E-Rate, High Cost	A condition that shows evidence of non-compliance with the FCC rules that were in effect during the audit period. A finding or DAF provides background information and exception details following a USAC audit.
E‑Certification (E‑Cert)	E-Rate, Rural Health Care, High Cost, Service Providers	A process that allows universal service support applicants to certify and submit forms online, eliminating the need for paper copies of forms (and original signatures) and facilitating simpler record-keeping.
E‑File	E-Rate, Rural Health Care, High Cost, Service Providers	USAC’s online forms submission tool. Allows universal service support applicants, contributors, and service providers to register with USAC, submit forms, view invoices, add or remove authorized users, update account information, and more. Accessible at https://forms.universalservice.org/.
Eligible Services	E-Rate, Rural Health Care, High Cost, Service Providers	Equipment and services that are eligible for universal service support. In the E-Rate program, eligible services include data transmission services and/or internet access, internal connections, the maintenance of internal connections, and managed internal broadband services. In the High Cost program, eligible services include the costs of deploying rural voice service (legacy funds) or rural broadband service (modernized funds). In the RHC program, eligible services include broadband connectivity and telecommunications services.
Eligible Telecommunications Carrier (ETC)	E-Rate, Rural Health Care, Lifeline, High Cost, Service Providers	A designation given to telecommunications service providers by their state public utility commissions or the FCC, enabling them to participate in universal service programs.
FCC Form 481 (Carrier Annual Reporting Data Collection Form)	High Cost	An FCC form that all ETCs in the High Cost and Lifeline programs must file annually by July 1. For High Cost carriers, the form collects outage data, request for service figures, branding information of the carrier’s holding company and affiliates, documentation of the carrier’s engagement with Tribal governments, certification of voice services pricing, results of network performance tests, certifications on frozen High Cost support, certifications on broadband services, and an annual report on the company’s financial condition and operations. For Lifeline carriers, the form collects branding information of the carrier’s holding company and its affiliates and terms and conditions of service plans offered to subscribers.
FCC Form 498	E-Rate, Rural Health Care, High Cost, Service Providers	The FCC form that telecommunications service providers must submit to participate in any of the universal service programs. The form collects contact, remittance, and payment information. Upon completion, the service provider is assigned a nine-digit unique identifier referred to as a 498 ID/Service Provider Identification Number (SPIN). Note: Applicants to the E-Rate program who choose the FCC Form 472 (Billed Entity Applicant Reimbursement (BEAR) Form) payment method must also have filed the FCC Form 498.
FCC Form 498 Company Officer	E-Rate, Rural Health Care, High Cost, Service Providers	See 498 Company Officer.

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.

Access Recovery Charge (ARC)

High Cost

A charge on customer bills that carriers use to recover part of the revenue lost to FCC-mandated reductions to switched access rates with reform of the intercarrier compensation system (the regulated payments among carriers to compensate each other for the origination, transport and termination of telecommunications traffic). More information is available on USAC’s ICC Recovery page.

Acquired Exchange Support (AEX or AES)

High Cost

The High Cost support paid to a carrier that acquires a telephone exchange eligible for funding from an unaffiliated carrier. Per-line support levels remain the same following the transfer of ownership.

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.

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.

Average Schedule Carrier

High Cost

The name given to NECA members that receive pool revenues or settlements for providing interstate telecommunications services. Revenues or settlements are calculated based on a series of FCC-approved statistical formulas that approximate the amounts that a similar cost company would receive.

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.

Chief Financial Officer (CFO)

High Cost, Service Providers

Corporate officer responsible for financial operations. Service provider company CFOs may serve as official certifiers of the accuracy of forms submitted to USAC. See also 497 Company Officer, 498 Company Officer, and 499 Company Officer.

Code of Federal Regulations (CFR)

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

The general and permanent rules published in the Federal Register by federal government agencies and executive branch departments. Telecommunications rules are located in Title 47 of the CFR. For specific language, see a digital version of the CFR.

Commission

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

A common abbreviation for the Federal Communications Commission (FCC). See also FCC.

Common Carrier

E-Rate, High Cost, Service Providers

An organization recognized by a regulatory authority (such as a state public utility commission) as providing telecommunications services to all requesting parties, or an organization that offers such services generally to the public for a fee.

Competitive Eligible Telecommunications Carrier (CETC)

High Cost

A telecommunications carrier that is certified by a state’s public utility commission or the FCC as eligible to receive High Cost support, but that is not the Incumbent Local Exchange Carrier, or ILEC (i.e. not the dominant local phone company).

Competitive Local Exchange Carrier (CLEC)

High Cost

A category of telecommunications provider created by the 1996 Telecommunications Act to open the telecom marketplace to new entrants that would compete with the dominant local phone companies known as Incumbent Local Exchange Carriers, or ILECs.

Cost Company

High Cost

A carrier participating in a High Cost legacy fund that calculates support based on carrier costs.

Detailed Audit Finding (Finding or DAF)

E-Rate, High Cost

A condition that shows evidence of non-compliance with the FCC rules that were in effect during the audit period. A finding or DAF provides background information and exception details following a USAC audit.

E‑Certification (E‑Cert)

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

A process that allows universal service support applicants to certify and submit forms online, eliminating the need for paper copies of forms (and original signatures) and facilitating simpler record-keeping.

E‑File

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

USAC’s online forms submission tool. Allows universal service support applicants, contributors, and service providers to register with USAC, submit forms, view invoices, add or remove authorized users, update account information, and more. Accessible at https://forms.universalservice.org/.

Eligible Services

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

Equipment and services that are eligible for universal service support. In the E-Rate program, eligible services include data transmission services and/or internet access, internal connections, the maintenance of internal connections, and managed internal broadband services. In the High Cost program, eligible services include the costs of deploying rural voice service (legacy funds) or rural broadband service (modernized funds). In the RHC program, eligible services include broadband connectivity and telecommunications services.

Eligible Telecommunications Carrier (ETC)

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

A designation given to telecommunications service providers by their state public utility commissions or the FCC, enabling them to participate in universal service programs.

FCC Form 481 (Carrier Annual Reporting Data Collection Form)

High Cost

An FCC form that all ETCs in the High Cost and Lifeline programs must file annually by July 1. For High Cost carriers, the form collects outage data, request for service figures, branding information of the carrier’s holding company and affiliates, documentation of the carrier’s engagement with Tribal governments, certification of voice services pricing, results of network performance tests, certifications on frozen High Cost support, certifications on broadband services, and an annual report on the company’s financial condition and operations. For Lifeline carriers, the form collects branding information of the carrier’s holding company and its affiliates and terms and conditions of service plans offered to subscribers.

FCC Form 498

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

The FCC form that telecommunications service providers must submit to participate in any of the universal service programs. The form collects contact, remittance, and payment information. Upon completion, the service provider is assigned a nine-digit unique identifier referred to as a 498 ID/Service Provider Identification Number (SPIN). Note: Applicants to the E-Rate program who choose the FCC Form 472 (Billed Entity Applicant Reimbursement (BEAR) Form) payment method must also have filed the FCC Form 498.

FCC Form 498 Company Officer

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

See 498 Company Officer.

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