Universal Service Fund FAQ
Universal Service Fund
The USF is a government administered fund to support the provision of telecommunications services in rural and high cost areas, low income consumers and to schools, libraries and healthcare facilities nationwide. All telecommunications providers contribute to the USF on an equal basis. The USF is administered by the Universal Service Administrative Company (USAC). The contribution factor changes quarterly and is approximately 11% of end user audio conferencing revenues. The USF assessment factor for the 4th Quarter of 2008 is 11.4%.
The United States Congress authorized the FCC to implement the Universal Service Fund. The USF is mandated by Section 254 of the Telecommunications Act of 1996. The USF is administered by USAC.
USAC is the Universal Service Administrative Company that was created by the Federal Communications Commission (FCC) to administer the federal USF. USAC is responsible for collecting contributions owed by contributors and for making support payments to entities eligible for reimbursement from the USF.
A recent decision by the FCC dictates that the USF is applicable to audio conferencing services. To remain in compliance and in good standing, BroadData Conferencing must file forms with USAC and pay the fee assessed by the FCC on the audio conferencing service revenue.
Yes. The June 30, 2008 FCC order clearly states that all providers of telecommunications which includes conferencing must comply with the order. The FCC has directed USAC to ensure that all conferencing service providers abide by the order.
The June 30 and July 17, 2008 FCC orders require USAC to collect the USF fee from BroadData Conferencing beginning on October 1, 2008. The USF charge will first appear on client invoices for conference calls made on or after October 1, 2008. BroadData customers will see the USF charge appear on their 11/1/2008 invoice for October 2008 calls. A change notice will be included to all customers in upcoming invoices.
No. The USF is based on end user revenues for calls subject to FCC jurisdiction.
Partially. Because the USF fee applies to all audio conferencing services, only the audio portion of the conference is subject to the USF fee. The June 30 2008 FCC order provides that the combination of the audio bridging with other features does not shield the conference from the USF fee.
No. Web conferencing services and other non audio conferencing related services, such as conference recording files, etc. are not subject to USF fees. Only audio conferencing services are subject to USF fees.
The USF fee applies to all interstate telecommunications regardless of the device used.
Yes. The USF fee applies to all interstate telecommunications regardless of the device used.
The USF fee is set by the FCC quarterly and collected by USAC. The USF fee for the 4th Quarter of 2008 is 11.4% of end user audio conferencing revenues.
No. USF fees apply to all end users including not-for-profit entities.
Additional information may be located at www.broaddata.com/usf/