Support Mechanism Charges

A contributor’s universal service contribution obligation, the “Support Mechanism Charge,” for the quarter is calculated in the first month of the quarter from the projected revenue reported on Lines 120B and 120C of the quarterly FCC Form 499-Q filing multiplied by the FCC’s contribution and circularity factors. USAC then divides that quarterly universal service contribution obligation by three to determine the monthly charge.

Exemptions to a monthly universal service contribution obligation include the Limited International Revenue Exemption (LIRE) for predominately international providers and the de minimis exemption for filers with small interstate and international revenues.

The exact formula for determining a monthly universal service contribution obligation can be found on the invoice under the “Support Mechanism Charges” section usually found on page two.

Example of Support Mechanism Charges

Calculation of a quarterly contribution base:

Calculation of a contribution obligation for the quarter:

Calculation to devise the total monthly contribution:

For all disputes regarding invoicing or late filing/payment fees, visit the Billing Disputes page.