FCC Form 499-Q Telecommunications Reporting Worksheet (Quarterly)

FCC Form 499-Q, February 2007
Approval by OMB 3060-0855
Estimated Average Burden Hours Per Response: 10 Hours

Telecommunications Reporting Worksheet, FCC Form 499-Q
Instructions for Completing the Quarterly
Worksheet for Filing Contributions
to Universal Service Support Mechanisms
*****
NOTICE: Sections 54.706, 54.711, and 54.713 of the Federal Communications Commission’s rules require
all telecommunications carriers providing interstate telecommunications services, interconnected voiceover-Internet-protocol (VoIP) providers that provide interstate telecommunications, providers of interstate
telecommunications that offer interstate telecommunications for a fee on a non-common carrier basis, and
payphone providers that are aggregators to contribute to universal service and file this Telecommunications
Reporting Worksheet (FCC Form 499-Q or Worksheet) on February 1, May 1, August 1, and November 1,
each year. 47 C.F.R. §§ 54.706, 54.711, 54.713. This collection of information stems from the
Commission's authority under Sections 151(i) and 254 of the Communications Act of 1934, as amended
(Communications Act or Act), 47 U.S.C. §§ 151(i), 254. The data in the Worksheet will be used to
calculate contributions to the universal service support mechanisms. Selected information provided in the
Worksheet will be made available to the public in a manner consistent with the Commission's rules.
We have estimated that each response to this collection of information will take, on average, 10.0 hours.
Our estimate includes the time to read the instructions, look through existing records, gather and maintain
the required data, project growth or decline in revenues, and actually complete and review the form or
response. If you have any comments on this estimate, or how we can improve the collection and reduce the
burden it causes you, please write the Federal Communications Commission, AMD-PERM, Washington,
D.C. 20554, Paperwork Reduction Project (3060-0855). We also will accept your comments via the
Internet if you send them to [email protected]. Please DO NOT SEND COMPLETED
WORKSHEETS TO THIS ADDRESS.
Remember -- You are not required to respond to a collection of information sponsored by the Federal
government, and the government may not conduct or sponsor this collection, unless it displays a currently
valid Office of Management and Budget (OMB) control number. This collection has been assigned an
OMB control number of 3060-0855.
The Commission is authorized under the Communications Act of 1934, as amended, to collect the
information we request in this form. We will use the information that you provide to determine contribution
amounts. If we believe there may be a violation or potential violation of a statute or a Commission
regulation, rule, or order, your Worksheet may be referred to the Federal, state, or local agency responsible
for investigating, prosecuting, enforcing, or implementing the statute, rule, regulation, or order. In certain
cases, the information in your Worksheet may be disclosed to the Department of Justice, court, or other
adjudicative body when (a) the Commission; or (b) any employee of the Commission; or (c) the United
States government, is a party to a proceeding before the body or has an interest in the proceeding.
With the exception of your employer identification number, if you do not provide the information we
request on the Worksheet, the Commission may consider you in violation of sections 1.47, 52.17, 52.32,
54.713, and 64.604 of the Commission's rules. 47 C.F.R. §§ 1.47, 52.17, 52.32, 54.713, and 64.604.
1

The foregoing Notice is required by the Paperwork Reduction Act of 1995, P.L. No. 104-13, 44 U.S.C. §§
3501, et seq.
*****

Table of Contents
I.

Introduction

3

II.

Filing Requirements and General Instructions
A.
Who Must File
1.
Universal service exemption for de minimis telecommunications providers
2.
Exception for government, broadcasters, schools and libraries
3.
Exception for systems integrator and self providers
B.
Filing by Legal Entity
C.
When and Where to File
D.
Rounding of Numbers and Negative Numbers
E.
Obligation to File Revisions
F.
Record Keeping
G.
Compliance

3
3
4
6
6
6
8
9
9
9
10

III. Specific Instructions
A.
Block 1: Contributor Identification Information
B.
Block 2: Contact Information
C.
Block 3: Contributor Revenue Information
1.
Separating telecommunications revenues from service provided
to other contributors to the federal universal service support
mechanisms for resale (Line 115) from telecommunications revenues
from service provided to end users (Line 116)
(carrier’s carrier vs. end user)
2.
Column (a) - total revenues
3.
Columns (b) and (c) - percent interstate & international
4.
Explanation of historical revenue categories
5.
Projected gross billed end-user interstate and international revenues
6.
Projected collected end-user interstate and international revenues
D.
Block 4: Certification

12
13
15
17
19
19
20

IV.

22

Reminders

Figure 1:
Figure 2:

Table to determine if a contributor meets the de minimis standard for purposes
of universal service contribution
Filing schedule

File FCC Form 499-Q online. See: http://forms.universalservice.org

2

10
10
11
11

5
8

I.

Introduction

As required under the Communications Act of 1934, as amended,1 the Commission has established
procedures to finance universal service support mechanisms. To accomplish this Congressionallydirected objective, contributions are collected from telecommunications carriers providing interstate
telecommunications and certain other providers of interstate telecommunications (including
interconnected VoIP providers). This Worksheet sets forth information that the contributor must
submit, so that the administrator of the universal service support mechanisms may calculate and
assess contributions.2

II.

Filing Requirements and General Instructions
A.

Who Must File

All providers of interstate telecommunications within the United States,3 with very limited
exceptions, must file an FCC Form 499-Q Telecommunications Reporting Worksheet.4
For purposes of determining whether an entity provides telecommunications, please note that the
term "telecommunications" means the transmission, between or among points specified by the user,
of information of the user's choosing, without change in the form or content of the information as
sent and received. For the purpose of filing, the term "interstate telecommunications" includes, but
is not limited to, the following types of services: wireless telephony, including cellular and personal
1

47 U.S.C. §§ 151 et seq.

2

On March 9, 2001, the Commission modified its rules to base universal service contributions on
information reported on quarterly Telecommunications Reporting Worksheet filings, with an annual trueup based on information reported on annual Telecommunications Reporting Worksheets. Federal-State
Joint Board on Universal Service, Petition for Reconsideration filed by AT&T, Report and Order and Order
on Reconsideration, CC Docket No. 96-45, 16 FCC Rcd 5748 (2001) (Quarterly Reporting Order). See
also, 1998 Biennial Regulatory Review -- Streamlined Contributor Reporting Requirements Associated
with Administration of Telecommunications Relay Services, North American Numbering Plan, Local
Number Portability, and Universal Service Support Mechanisms, Report and Order, CC Docket 98-171, 14
FCC Rcd 16602 (1999) (Consolidated Reporting Order).
3

For this purpose, the United States is defined as the contiguous United States, Alaska, Hawaii, American
Samoa, Baker Island, Guam, Howland Island, Jarvis Island, Johnston Atoll, Kingman Reef, Midway Island,
Navassa Island, the Northern Mariana Islands, Palmyra, Puerto Rico, the U.S. Virgin Islands, and Wake
Island.

4

Section 254(d) applies not only to “every telecommunications carrier that provides interstate
telecommunications services” but also to certain “other provider[s] of interstate telecommunications.” 47
U.S.C. § 254(d) (emphasis added). For more information on these terms, see 47 U.S.C. §§ 153(43), (46);
Federal-State Joint Board on Universal Service, Report and Order, CC Docket No. 96-45, 12 FCC Rcd
8776 (1997) (Universal Service Order); Universal Service Contribution Methodology, Federal-State Joint
Board on Universal Service, 1998 Biennial Regulatory Review – Streamlined Contributor Reporting
Requirements Associated with Administration of Telecommunications Relay Service, North American
Numbering Plan, Local Number Portability, and Universal Service Support Mechanisms,
Telecommunications Services for Individuals with Hearing and Speech Disabilities, and the Americans
with Disabilities Act of 1990, Administration of the North American Numbering Plan and North American
Numbering Plan Cost Recovery Contribution Factor and Fund Size, Number Resource Optimization,
Telephone Number Portability, Truth-In-Billing and Billing Format, IP-Enabled Services, Report and
Order and Notice of Proposed Rulemaking, WC Docket Nos. 06-122 and 04-36, CC Docket Nos. 96-45,
98-171, 90-571, 92-237, 99-200, 95-116, and 98-170, 21 FCC Rcd 7518 (2006) (2006 Contribution
Methodology Reform Order).

3

communications services (PCS); paging and messaging services; dispatch services; mobile radio
services; operator services; access to interexchange service; special access; wide area
telecommunications services (WATS); subscriber toll-free services; 900 services; message
telephone services (MTS); private line; telex; telegraph; video services; satellite services; resale
services; frame relay and ATM services; and interconnected VoIP services.5 Note, for example,
that all incumbent and competitive local exchange carriers provide access to an interstate public
network and, therefore, provide interstate telecommunications. There are no exemptions for data or
non-voice services.
Note also that entities must file this Worksheet, and are subject to universal service contribution
requirements, if they offer interstate telecommunications for a fee to the public even if only a
narrow or limited class of users could utilize the services. Included are entities that provide
interstate telecommunications to entities other than themselves for a fee on a private, contractual
basis. In addition, owners of pay telephones, sometimes referred to as "pay telephone
aggregators," and interconnected VoIP providers must file this Worksheet if they do not qualify
for the de minimis exemption under the Commission’s universal service rules.
Marketing agents (i.e., entities that market services on behalf of a telecommunications provider)
are not themselves telecommunications providers and are not required to file this Worksheet.
The amounts remitted to or retained by the marketing agent are treated as expenses of the
underlying provider and may not be deducted from underlying carrier revenues. A reseller is not
a marketing agent.
The following three sections list types of telecommunications providers that are not required to
file the FCC Form 499-Q. Note that such entities are treated as end users by their underlying
carriers and therefore may be subject to pass-through charges.
1.

Universal service exemption for de minimis telecommunications providers

Section 54.708 of the Commission’s rules states that telecommunications carriers and
telecommunications providers are not required to contribute directly to the universal service support
mechanisms for a given year if their contribution for that year is less than $10,000.6 Thus, potential
contributors whose contribution to the universal service support mechanisms would be de minimis
under the universal service rules are not required to file the Worksheet (FCC Form 499-Q) or
contribute directly to universal service. Telecommunications carriers and other telecommunications
providers should complete the table contained in Figure 1 to determine whether they meet the de
minimis standard. To complete Figure 1, potential filers and all affiliates must first complete block 3
of the Worksheet and enter the amounts from Line 120(b) and 120(c) in Figure 1.
Telecommunications providers that do not file this Worksheet because they are de minimis for
purposes of universal service contributions (and need not file for any other purpose) should retain
Figure 1 and documentation of their contribution base revenues nonetheless for three years and may
be required to provide it to the FCC, the FCC’s Data Collection Agent or the Universal Service
Administrative Company (USAC) upon request.

5

See 47 C.F.R. § 9.3 (defining interconnected VoIP service).

6

47 C.F.R. § 54.708.

4

Figure 1:

5

Table to determine if a contributor meets the de minimis standard
for purposes of universal service contribution
Interstate contribution base for the quarter for filer (amount reportable on
$
filer’s FCC Form 499-Q; Line 120(b))
International contribution base for the quarter for filer (amount reportable on
$
filer’s FCC Form 499-Q; Line 120(c))
Interstate contribution base for the quarter for all affiliates* (total of amounts
$
reportable on FCC Form 499-Q; Line 120(b) for all affiliates of the filer)
International contribution base for the quarter for all affiliates (total of
$
amounts reportable on FCC Form 499-Q; Line 120(c) for all affiliates of the
filer)
Consolidated interstate contribution base: Line (1) + Line (3)
$

6

Consolidated international contribution base: Line (2) + Line (4)

$

7

Total potential contribution base for filer and its affiliates: Line (5) + Line (6)

$

8

Combined interstate contribution base as a percentage of total potential
contribution base: Line (5) / Line (7)
Interstate contribution base for filer from Line (1)

1
2
3
4

9

%
$

10

If the amount in Line (8) is equal to or greater than 12%, enter into Line (10)
the international contribution base for the filer from Line (2). If the amount on
Line (8) is less than 12%, enter $0

$

11

Revenue base for the filer for the quarter for determining contributions to
universal service support mechanisms: Line (9) + Line (10)

$

12

If the projected revenues on Lines (1) and (2) include projected pass-through
charges for contributions to federal universal service support mechanisms,
enter the total amount of projected pass-through charges. If the projected
revenues on Lines (1) and (2) do not include any universal service passthrough charges, enter $0.

$

13

Contribution base; Line (11) – Line (12)

$

14

Annualizing multiplier

15

Annualized contribution base; Line (13) multiplied by Line (14)

16

Estimation factor for determining whether to file a 499-Q

17

Estimated annual contribution: amount in Line (15) multiplied by Line (16)

*

**

4

0.104**
$

Unless otherwise specifically provided, an affiliate is a "person that (directly or indirectly) owns or
controls, is owned or controlled by, or is under common ownership or control with, another person." For
this purpose, the term ‘owns’ means to own an equity interest (or the equivalent thereof) of more than 10
percent. See 47 U.S.C. § 153(1).
The estimation factor is based on a contribution factor of .115, which is higher than the contribution factor
announced for any quarter of 2006, and a corresponding circularity factor of .102213. See Public Notice,
DA 06-571. Actual contribution factors for future quarters may increase or decrease depending on
quarterly changes in program costs and the contribution base. Filers whose actual contribution
requirements total less than $10,000 for the calendar year will be treated as de minimis and will receive
refunds, if necessary. Filers whose actual contribution requirements total $10,000 or more are required to
contribute to the universal service support mechanisms and must file this Worksheet.

5

2.

Exception for government, broadcasters, schools, and libraries

Certain entities are explicitly exempted from contributing directly to the universal service support
mechanisms and need not file this Worksheet.
Government entities that purchase
telecommunications services in bulk on behalf of themselves, e.g., state networks for schools and
libraries, are not required to file or contribute directly to universal service. Public safety and local
governmental entities licensed under Subpart B of Part 90 of the Commission's rules are not
required to file or contribute directly to universal service. Similarly, if an entity provides interstate
telecommunications exclusively to public safety or government entities and does not offer services
to others, that entity is not required to file or contribute directly to universal service. In addition,
broadcasters, non-profit schools, non-profit libraries, non-profit colleges, non-profit universities,
and non-profit health care providers are not required to file the Worksheet or contribute directly to
universal service. As explained above, these non-contributors must be treated as end users by their
underlying carriers and therefore may end up contributing indirectly as a result of pass-through
charges.
3.

Exception for systems integrators and self providers

Systems integrators that derive less than five percent of their systems integration revenues from
the resale of telecommunications are not required to file or contribute directly to universal
service. Systems integrators are providers of integrated packages of services and products that
may include the provision of computer capabilities, interstate telecommunications services,
remote data processing services, back-office data processing, management of customer
relationships with underlying carriers and vendors, provision of telecommunications and
computer equipment, equipment maintenance, help desk functions, and other services and
products). Legal entities that provide services only to themselves or to commonly-owned
affiliates need not file.
B.

Filing by Legal Entity

Each legal entity that provides interstate telecommunications service for a fee, or that provides
interstate interconnected VoIP service, including each affiliate or subsidiary of an entity, must
complete separately and file a copy of the attached Telecommunications Reporting Worksheet,
except as provided for below. Entities that have distinct articles of incorporation, articles of
formation or similar legal documents are separate legal entities. Each affiliate or subsidiary
should identify their ultimate controlling parent or entity on Block 1 Line (105) -- Holding
Company.
Consolidated filing will be permitted only if the filing entity certifies that all of the following
conditions are met:7

7

Federal-State Joint Board on Universal Service, 1998 Biennial Regulatory Review - Streamlined
Contributor Reporting Requirements Associated with Administration of Telecommunications Relay Service,
North American Numbering Plan, Local Number Portability, and Universal Service Support Mechanisms,
Telecommunications Services for Individuals with Hearing and Speech Disabilities, and the Americans
With Disabilities Act of 1990, Administration of the North American Numbering Plan and North American
Numbering Plan Cost Recovery Contribution Factor and Fund Size, Number Resource Optimization,
Telephone Number Portability, Truth-in-Billing and Billing Format, Further Notice of Proposed
Rulemaking and Report and Order, CC Docket Nos. 96-45, 98-171, 90-571, 92-237, 99-200, 95-116,
98-170, 17 FCC Rcd 3752 (2002) (First Further Notice and Report and Order).

6

(1)
(2)

A single entity oversees the management of the affiliated systems;
A single entity sends bills to customers and these bills identify a single entity (or
trade name) as the service provider, rather than identifying the individual legal
entities;
(3) All revenues are posted to a single general ledger;8
(4) To the extent that 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;
(5) Customers have a single point of contact;
(6) The consolidated filer acknowledges that process served on the consolidated filer
would represent process served on any or all of the affiliated legal entities;
(7) The consolidated filer agrees to document and resolve all slamming complaints
that might be served on either the filing entity or any of the affiliated legal
entities;9
(8) The consolidated filer obtains a separate FCC Registration Number (FRN) from
those assigned to its affiliated legal entities;
(9) The consolidated filer acknowledges that its obligations with regard to universal
service, Telecommunications Relay Services, Local Number Portability, the North
American Numbering Plan, and regulatory fees will be based on the data provided
in consolidated Worksheet filings, that it bears the responsibility to satisfy those
obligations, and that all legal entities covered by the filing are jointly and severally
liable for such obligations; and
(10) The consolidated filer acknowledges that it: (A) 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, Telecommunications Relay Services, Local Number
Portability, the North American Numbering Plan, and regulatory fees, and did not
become insolvent as a result of such undertaking or payments; (B) was not left
with unreasonably small capital as a result of such undertaking or payments; and
(C) was not left unable to pay debts as they matured as a result of such undertaking
or payments.10
Each year, entities choosing to file on a consolidated basis must file a statement certifying that
they meet all of the above conditions. Such certification also must include: (1) a list of the legal
names of all legal entities that are covered by the filing; (2) the FCC Form 499 identification
numbers of all legal entities that are covered by the filing; (3) the consolidated filer’s FRN; and
(4) for wireless carriers, a list of all radio licenses (call signs) issued to each legal entity covered
by the filing. Consolidated filers should file this certification with the Commission’s Data
Collection Agent. Furthermore, a contributor choosing to file on a consolidated basis should
recognize that any penalties associated with failure to pay or with 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.

8

The FCC Form 499 Filings for the consolidated filer must reflect all revenues in this general ledger.

9

A Commercial Mobile Radio Service (CMRS) carrier that is not subject to certain slamming regulations is
not required to certify that it will document and resolve all slamming complaints that might be served on
either the filing entity or any of its affiliated legal entities that also are not subject to the slamming
regulations.
10

For purposes of this certification, the term "insolvent" means either unable to pay debts when due or
having liabilities greater than assets. See 11 U.S.C. § 101(32).

7

C.

When and Where to File

Figure 2 provides the filing schedule and relevant filing addresses. If a filing date is a holiday (as
defined in Section 1.4(e)(1) of the Commission's rules), Worksheets are due the next business day.
Figure 2: Filing schedule
When to file

What to file

Where to file *

February 1 of each year

Completed FCC Form 499-Q
containing revenue information for
October 1 through December 31 of
the prior calendar year and
projections for April 1 through
June 30

Form 499 Data Collection
Agent
c/o USAC
2000 L Street, N.W.
Suite 200
Washington, DC 20036

April 1 of each year

Completed FCC Form 499-A
containing revenue information for
January 1 through December 31 of
the prior calendar year

Form 499 Data Collection Agent
(address above)

May 1 of each year

Completed FCC Form 499-Q
containing revenue information for
January 1 through March 31 and
projections for July 1 through
September 30

Form 499 Data Collection Agent
(address above)

August 1 of each year

Completed FCC Form 499-Q
containing revenue information for
April 1 through June 30 and
projections for October 1 through
December 31
Completed FCC Form 499-Q
containing revenue information for
July 1 through September 30 and
projections for January 1 through
March 31 of the coming year

Form 499 Data Collection Agent
(address above)

November 1 of each year

Form 499 Data Collection Agent
(address above)

* Do not send universal service contributions with this Worksheet or to the above address. The
universal service administrator will calculate the amount of contribution due and send a bill to the
billing contact person and billing address identified in Line (112) of the FCC Form 499-Q. For
information on filing electronically, go to http://forms.universalservice.org.

8

D.

Rounding of Numbers and Negative Numbers

All information provided in the Worksheet should be neatly printed in ink or typed. Please provide
an original officer signature in ink in Line (122).
Dollar Amounts. Reported revenues in Block 3 that are greater than a thousand dollars may be
rounded to the nearest thousand dollars. Regardless of rounding, all dollar amounts must be
reported in whole dollars. For example, $2,271,881.93 could be reported as $2,271,882 or as
$2,272,000, but could not be reported as $2272 thousand, $2,270,000.00 or $2.272 million. Please
enter $0 in any line for which the contributor had no revenues for the period being reported.
Negative Numbers. Contributors are directed to provide billed revenues on Lines (115) through
(119) without subtracting any expenses, allowances for uncollectibles or settlement payments and
without making out-of-period adjustments. The amount of projected uncollectibles (the difference
between Line (119) and Line (120)) cannot exceed projected billings. Therefore, do not enter
negative numbers on the form.
E.

Obligation to File Revisions

Line 127 provides check boxes to show whether the Worksheet is the original filing or a revised
filing for the quarter. A contributor must file a revised 499-Q Worksheet if it discovers an error in
the data that it reports, i.e., if the filer discovers that it omitted or misclassified a major category of
revenue. However, revised filings must be made within 45 calendar days of the original filing date.
In general, the historical revenues contained in the quarterly filings will be based on unaudited books
from a point in time and the projections will represent the filer’s expectations as of a point in time.
Contributors need not file revisions to the FCC Form 499-Q as a result of ordinary accounting
adjustments such as out-of-period adjustments. Revenue information from the FCC Form 499-A
will be used to ensure that contributions for the whole year are based on all subject revenues for the
year.
Filers should not file revised revenue information to reflect mergers, acquisitions, or sales of
operating units. In the event that a filer that submitted a Form 499-Q no longer exists, the successor
company to the contributor's assets or operations is responsible for continuing to make assessed
contribution or true-up payments, if any, for the funding period and must notify the Form 499 Data
Collection Agent.
F.

Record Keeping

Filers shall maintain records and documentation to justify information reported in the
Telecommunications Reporting Worksheet, including the methodology used to determine
projections and to allocate interstate revenues, for three years. Filers shall provide such records
and documentation to the Commission or the Administrator upon request.11 Review by the
Commission or the Administrator may cover any existing corporate records, not just those
specifically maintained for the three year period.12 Entities that acquire carrier operations through
acquisition of property, consolidation, merger, etc., must maintain the records of the acquired
entity.13
11

See 47 C.F.R. § 54.711. Administrator refers to the Universal Service Administrative Company.

12

See 47 U.S.C. § 218.

13

See 47 C.F.R. § 42.1.

9

G.

Compliance

Failure to file the Telecommunications Reporting Worksheet or to pay contributions in a timely
fashion may subject entities to the enforcement provisions of the Communications Act and any
other applicable law.14 In addition, entities may be billed by the administrators for reasonable costs,
including interest and administrative costs that are caused by late, inaccurate, or untruthful filing of
the Worksheet or overdue contributions.15 Inaccurate or untruthful information contained in the
Telecommunications Reporting Worksheet may lead to prosecution under the criminal provisions
of Title 18 of the United States Code.16

III.

Specific Instructions
A.

Block 1: Contributor Identification Information

Block 1 of the Telecommunications Reporting Worksheet requires identification information.
Line 101 -- enter the "Filer 499 ID" number for the filing entity. This code is assigned by the
Commission’s Data Collection Agent after a company files its first FCC Form 499-A. Filer 499
IDs for current filers can be found at http://gullfoss2.fcc.gov/cib/form499/499a.cfm or in the FCC
report Telecommunications Provider Locator, which is available on the Commission's web site at
http://www.fcc.gov/wcb/iatd/stats.html. This code should be entered at the top of any cover letter
or supporting documentation. New filers are assigned Filer 499 ID numbers after a completed FCC
Form 499-A Telecommunications Reporting Worksheet is received by the Data Collection Agent.
Line 102 -- enter the legal name of the filer as it appears on articles of incorporation and other
legal documents. Each legal entity must file a separate Worksheet unless affiliated entities are
filing on a consolidated basis.17
Line 103 -- provide the Internal Revenue Service (IRS) employer identification number (EIN) for
the filer. This should be the same EIN that the company uses to file federal excise taxes or income
taxes, if the filer offers services subject to those taxes. Consolidated filers should provide the EIN
of the holding company. The EIN is also known as the taxpayer identification number (TIN) or for
individuals as the social security number (SSN).
Line 104 -- provide the principal name under which the company conducts telecommunications
activities. This would typically be the name that appears on customer bills, or the name used when
service representatives answer customer inquiries.
Line 105 -- use this block to provide a common identifier for all affiliated filers. Typically, this
would be the name of the filer's holding company or controlling entity, if any. The common name
14

In addition, pursuant to the Debt Collection Improvement Act of 1996, the Commission shall withhold
action on applications or other requests for benefits by delinquent debtors and dismiss those applications or
other requests if the delinquent debt is not paid or satisfactory arrangement for payment is not made. See
47 C.F.R. § 1.1910; Amendment of Parts 0 and 1 of the Commission’s Rules, Implementation of the Debt
Collection Improvement Act of 1996 and Adoption of Rules Governing Applications or Requests for
Benefits by Delinquent Debtors, MD Docket No. 02-339, 19 FCC Rcd 640 (2004).

15

See 47 C.F.R. § 54.713 (universal service); 47 C.F.R. § 64.604(c)(5)(iii)(B) (TRS). See also 47 C.F.R. §
52.17(b) (NANPA); 47 C.F.R. § 52.32(c) (LNPA).

16
17

See 47 C.F.R. § 54.711.
See Section II-B, page 6, for information on making consolidated filings.

10

used by all affiliates need not be a common carrier. All reporting affiliates or commonly controlled
entities should have the identical name appearing on Line 105. Unless otherwise specifically
provided, an affiliate is a "person that (directly or indirectly) owns or controls, is owned or
controlled by, or is under common ownership or control with, another person." For this purpose,
the term ‘owns’ means to own an equity interest (or the equivalent thereof) of more than 10
percent."18
Line 106 -- provide the FCC Registration Number (FRN). The FRN is a ten digit number that
includes a check-digit. The FRN is used to identify an entity within all Commission
Licensing/Filing systems and RAMIS (the Commission’s Revenue Accounting Management
Information System.) This number is assigned by CORES (the Commission Registration System)
and can be obtained at https://gullfoss2.fcc.gov/cores/CoresHome.html. For assistance, contact the
CORES help desk at (877) 480-3201 or by e-mail at [email protected].
Line 107 -- enter the complete mailing address of the corporate headquarters of the reporting entity.
B.

Block 2: Contact Information

Lines 108-111 -- enter the name, telephone number, fax number, and email address of the person
who filled out the FCC Form 499-Q. This should be a person who can provide clarifications or
additional information, and, if necessary, who could serve as the first point of contact in the event
that either the Commission or an administrator should choose to verify or audit information
provided in the Telecommunications Reporting Worksheet. Email addresses must be provided if
available. Email addresses, other than those for agents for service of process, will not be shared
with parties other than the Commission or the Administrator.
Line 112 -- provide a billing contact person name and address for administrators to send billing
information for contributions to the universal service fund. Information on establishing electronic
fund transfer and bills for universal service will be sent to this address unless other arrangements are
made via written request.
C.

Block 3: Contributor Revenue Information

Line 113 – enter the year for which revenue information is being filed.
Line 114 – indicate the calendar quarters for which historical and projected revenue information are
being reported.
Lines 115-120 contain detailed revenue data.

18

See 47 U.S.C. § 153(1).

11

1.

Separating Telecommunications Revenues from Service Provided to
Other Contributors to the Federal Universal Service Support Mechanisms
for Resale [Line (115)] from Telecommunications Revenues from
Service Provided to End Users [Line (116)] (carrier's carrier vs. end-user)

In the Telecommunications Reporting Worksheet, filers must report revenues using two broad
categories: (1) Revenues from other contributors to the federal universal service support
mechanisms; and (2) Revenues from all other sources. Taken together, these revenues should
include all revenues billed to customers and should include all revenues on the reporting entities’
books of account.
For the purposes of this Worksheet, “Revenues from services provided for resale by other
contributors to federal universal service support mechanisms” are revenues from services
provided by underlying carriers to other entities that currently are contributors to universal
service support mechanisms and that are resold in the form of telecommunications. Such
revenues are referred to herein as "carrier's carrier revenues" or "revenues from resellers." An
underlying carrier also may include as carrier's carrier revenues any international switched
service revenues received from another U.S. reselling carrier where that reselling carrier is using
the underlying carrier's service to refile the foreign-billed traffic of a foreign telephone operator.
In this case, the reselling carrier must certify to the underlying carrier that it is using the resold
international switched service to handle traffic that both originates and terminates in foreign
points. In some instances, reselling carriers are themselves selling the underlying service to
another reseller. In these instances, an underlying carrier also may include as carrier’s carrier
revenue any revenues received from service provided to resellers who certify to the underlying
carrier that: a) all of the reseller’s customers are themselves FCC Form 499-A worksheet filers;
and b) all of the reseller’s customers are direct contributors to universal service support
mechanisms. Revenues from all other sources consist primarily of revenues from services
provided to end users, referred to here as "end-user revenues." This latter category includes
foreign and non-telecommunications revenues.
For the purpose of completing Line (115), a “reseller” is a telecommunications carrier or
telecommunications provider that: 1) incorporates purchased telecommunications services into its
own telecommunications offerings; and 2) can reasonably be expected to contribute to federal
universal service support mechanisms based on revenues from such offerings when provided to end
users.
On an interim basis, carriers that provide telecommunications inputs to interconnected VoIP
providers should report the resulting revenues as end-user revenues on Line 116. These carriers
may not exclude these revenues by invoking the “carrier’s carrier” rule.19
Each filer should have documented procedures to ensure that it reports as “revenues from
resellers” only revenues from entities that reasonably would be expected to contribute to support
universal service. The procedures should include, but not be limited to, maintaining the
following information on resellers: Filer 499 ID; legal name; address; name of a contact person;

19

Starting April 1, 2007, service resold in the form of interconnected VoIP can be treated the same as
service resold as telecommunications. See also 2006 Contribution Methodology Reform Order, 21 FCC
Rcd at 7547-75-48, paras. 58-59 (this requirement is in effect for two full quarters following the effective
date of this Order).

12

phone number of the contact person.20 Filers shall provide this information to the Commission or
the Administrator upon request.
In addition, to facilitate verification of a reseller’s certification, current contributors to universal
service are identified at http://gullfoss2.fcc.gov/cib/form499/499a.cfm. Filers may use the
website to verify the continuing validity of a reseller’s certification, and may presume that any
reseller identified as a contributor in this website in the month prior to an FCC Form 499-Q filing
will be a contributor for the coming quarter, and that it was a contributor for all prior quarters
during that calendar year. Filers that do not comply with the above procedures will be
responsible for any additional universal service assessments that result if its customers must be
reclassified as end users.
Note: For the purposes of filling out this Worksheet -- and for calculating contributions to the
universal service support mechanisms -- certain telecommunications carriers and service providers
may be exempt from contribution to the universal service support mechanisms. These exempt
entities, including "international only" and "intrastate only" providers and providers that meet the de
minimis universal service threshold, should not be treated as resellers for the purpose of reporting
revenues on Line 115. That is, filers that are underlying carriers should report revenues derived
from the provision of telecommunications to exempt carriers and providers (including services
provided to entities that are de minimis for universal service purposes) on Line (116). Underlying
carriers must contribute to the universal service support mechanisms on the basis of such revenues.
2.

Column (a) - total revenues

The reporting entity must report gross revenues from all sources, including nonregulated and nontelecommunications services on Lines 115 through 117 and these must add to total gross revenues
as reported on Line 118. Gross revenues include account set-up, connection, service restoration,
termination and other non-recurring charges. These charges should be reported on the same line that
the filer reports any associated recurring revenue. For example, an early termination charge to an
end user for an interstate private line service would be reported as interstate revenue on Line 116.
Deposits are not revenue. Gross revenues should include revenues derived from the activation and
provision of interstate, international, and intrastate telecommunications and nontelecommunications services. Gross revenues consist of total revenues billed to customers during
the filing period with no allowances for uncollectibles, settlements, or out-of-period adjustments.
Gross revenues do not include amounts that cannot be billed to customers. Gross revenues should
include collection overages and unclaimed refunds for telecommunications and telecommunications
services when not subject to escheats. Gross billed revenues may be distinct from booked revenues.
National Exchange Carrier Association (NECA) pool companies should report the actual gross
billed revenues (CABS Revenues) reported to the NECA pool and not settlement revenues received
from the pool. Entities making consolidated filings must include in their FCC Form 499 Filings all
revenue on the consolidated books of account.21
An entity is not required to impute or report revenues for services provided to itself or to wholly
owned affiliates unless: 1) it is required to record such revenues for some other federal or state
regulatory purpose; or 2) the filer is providing service to an affiliate for resale and the affiliate is not
a direct universal service contributor.
20

In addition to having documented procedures, each filer should also follow the annual procedures
outlined in the Form 499-A Instructions. See Telecommunications Reporting Worksheet, FCC Form 499A, Instructions at 19 (FCC Form 499-A Instructions).
21

For additional information regarding the reporting of revenues filers should refer to the Form 499-A
Instructions. FCC Form 499-A Instructions at 19-29.

13

Where two contributors have merged prior to the filing date, the successor company should report
total revenues for the reporting period for all predecessor operations. The two contributors,
however, should continue to report separately if each maintains separate corporate identities and
continues to operate.22 Where an entity obtains, through purchase, merger or transfer, the
telecommunications operations or customer base of a telecommunications provider during a quarter,
the acquiring company must report all telecommunications revenues associated with such
operations or customer base including revenues billed in the quarter prior to the date of acquisition.
Gross revenues also should include any surcharges on telecommunications services or
interconnected VoIP services that are billed to the customer and either retained by the contributor or
remitted to a non-government third party under contract. Gross revenues should exclude taxes and
any surcharges that are not recorded on the company books as revenues but which instead are
remitted to government bodies. Note that any charge included on the customer bill and represented
to recover or collect contributions to federal or state universal service support mechanisms must be
included in Line (116). Filers should report as intrastate revenues state universal service charges
only to the extent that actual payments to state universal service programs were recovered by passthrough charges itemized on customer bills. Other surcharges treated as revenue should be included
in the revenue categories on which the surcharges were levied.
For international services, gross revenues consist of gross revenues billed by U.S. contributors with
no allowances for settlement payments. International settlement receipts for foreign billed service
should not be included in revenues. For common carriers providing international
telecommunications services: except in very limited circumstances, the total revenues reported on
the FCC Form 499-Q should match the total U.S. billed revenues that will be reported each year
pursuant to 47 C.F.R. § 43.61. For example, if a filer receives payment from a foreign carrier for
traffic that the filer receives outside of the United States, brings into the United States, and then
refiles and carries the traffic to a foreign point, the filer would not include those settlement-like
payments as revenues on the FCC Form 499-Q even though they might be reported as revenues on
the Filer’s 43.61 international traffic data report. Note that if the filer receives the traffic in the
United States, then it is providing ordinary international service from the United States to a foreign
point and receipts from the originating carrier would be reported as revenue on Line 116 (c).
Filers may report international revenues in Section 43.61 reports that are net of credits at the time
the credits are issued. For FCC Form 499 purposes, credits may be recognized only when
redeemed. In Form 499 worksheets, filers that use earned revenue to represent billed revenue may
recognize credits when redeemed but may not report negative revenues. Other filers should include
credits in uncollectibles, when earned.
For international private line services, U.S. providers must report on Line 116 revenues from the
U.S. portion of the circuit to the theoretical midpoint of the circuit regardless of whether such
revenues were billed to the customer by the filer or by a partner provider in a foreign point.
Revenues from circuits within the United States that connect a customer to an international circuit
should be reported as interstate. Revenues from circuits that connect foreign points should be
reported on Line 118.
For purposes of completing this Worksheet, prepaid card revenues should be recognized when
end-user customers purchase the cards. International revenues may be reported differently on the

22

See also Section II-E, above.

14

filer’s 43.61 international traffic data reports, where revenues may be based on calls actually
placed.
If you have any revenue for Lines (115) and (116), you may not omit the dollar amounts from
column (a) even if 100% of the revenue is for interstate or international service.
3.

Column (b) and (c) - interstate & international

Columns (b) and (c) are provided to identify the part of gross revenues that arise from interstate and
international services for Lines (115) and (116). Intrastate telecommunications means
communications or transmission between points within the same State, Territory, or possession of
the United States, or the District of Columbia. Interstate and international telecommunications
means communications or transmission between a point in one State, Territory, possession of the
United States or the District of Columbia and a point outside that State, Territory, possession of the
United States or the District of Columbia. Revenues from services offered under interstate tariffs,
such as revenues from federal subscriber line charges and from federally tariffed local number
portability surcharges, should be identified as interstate revenues. This includes amounts
incorporated in or bundled with other local service charges.
For example, if a prepaid calling card provider collects a fixed amount of revenue per minute of
traffic, and 65 percent of minutes are interstate, then interstate revenues would include 65 percent of
the end-user revenues. Similarly, if a local exchange carrier bills local measured service charges for
calls that originate in one state and terminate in another, these billings should be classified as
interstate even though the charges are covered by a state tariff and the revenues are included in a
local service account. If over ten percent of the traffic carried over a private or WATS line is
interstate, then the revenues and costs generated by the entire line are classified as interstate.23 In
general, flat-rated unbundled network access elements should be classified according to the
regulatory agency that has primary jurisdiction over the contracts.
Amounts billed to customers to recover federal universal service contribution obligations should be
attributed as either interstate or international revenues, as appropriate, on Line 116 but may not be
reported as intrastate revenues.
Note: Where possible, filers should report their amount of total revenues that are interstate and
international by using information from their books of account and other internal data reporting
systems. Where a filer can determine the precise amount of revenues that it has billed for interstate
and international services, it should enter those amounts in columns (b) and (c), respectively.
If interstate and international revenues cannot be determined directly from corporate books of
account or subsidiary records, filers provide on the Worksheet good-faith estimates of these figures.
Good-faith estimates must be based on information that is current for the filing period. Information
supporting good-faith estimates must be made available to either the FCC, data collection agent, or
to the Administrator upon request. For convenience, calculated interstate and international revenue
amounts that are greater than one thousand dollars may be rounded to the nearest thousand dollars.
Please enter zero dollars in column (b) or column (c) if, and only if, there were no interstate or
international revenues for the line for the reporting period.

23

See 47 C.F.R. § 36.154(a).

15

Note that the FCC provides the following safe harbor percentages of interstate wireless revenues
associated with Lines 115, 116, 119 and 120:24
37.1% of cellular and broadband PCS telecommunications revenues
12% of paging revenues
1% of analog SMR dispatch revenues
These safe harbor percentages may not be applied to universal service pass-through charges, fixed
local service revenues, or toll service charges. All filers must report the actual amount of
interstate and international revenues for these services. For example, toll charges for
itemized calls appearing on mobile telephone customer bills should be reported as intrastate,
interstate or international based on the origination and termination points of the calls.
The FCC provides the following safe harbor percentage of interstate interconnected VoIP revenues
associated with Line 115, 116, 119 and 120:25
64.9% of interconnected VoIP telecommunications revenues
These safe harbor percentages may not be applied to universal service pass-through charges or
other fixed local service revenues.
Wireless telecommunications providers and interconnected VoIP providers that choose to avail
themselves of these safe harbor percentages for interstate revenues may assume that the FCC will
not find it necessary to review or question the data underlying their reported percentages. All
affiliated wireless telecommunications providers and interconnected VoIP providers must make a
single election, each quarter, whether to report actual revenues or to use the current safe harbor
within the same safe harbor category.26 So, for example, if in a calendar quarter a wireless
telecommunications provider reports actual interstate revenues for its cellular and broadband PCS
telecommunications services, all of its affiliated legal entities must also report actual interstate
telecommunications revenues for cellular and broadband PCS offerings. The same wireless
24

See 2006 Contribution Methodology Reform Order, 21 FCC Rcd at 7532-33, 7545-46, paras. 25-27, 5355. Federal-State Joint Board on Universal Service, 1998 Biennial Regulatory Review - Streamlined
Contributor Reporting Requirements Associated with Administration of Telecommunications Relay Service,
North American Numbering Plan, Local Number Portability, and Universal Service Support Mechanisms,
Telecommunications Services for Individuals with Hearing and Speech Disabilities, and the Americans
With Disabilities Act of 1990, Administration of the North American Numbering Plan and North American
Numbering Plan Cost Recovery Contribution Factor and Fund Size, Number Resource Optimization,
Telephone Number Portability, Truth-in-Billing and Billing Format, Report and Order and Second Further
Notice of Proposed Rulemaking, CC Docket Nos. 96-45, 98-171, 90-571, 92-237, 99-200, 95-116, 98-170,
17 FCC Rcd 24,952 (2002) (Contribution Methodology Order); see also, Federal-State Joint Board on
Universal Service, Memorandum Opinion and Order and Further Notice of Proposed Rulemaking, CC
Docket No. 96-45, 13 FCC Rcd 21252, 21258-60 (1998).
25

See 2006 Contribution Methodology Reform Order, 21 FCC Rcd at 7532-33, 7545-46, paras. 25-27, 5355.
26

See Federal-State Joint Board on Universal Service, Order and Order on Reconsideration, CC Docket
No. 96-45, 18 FCC Rcd 1421 (2003). Note: Wireless telecommunications providers are “affiliated” for
purposes of making the single election whether to report actual interstate telecommunications revenues or
use the applicable interim wireless safe harbor if one entity (1) directly or indirectly controls or has the
power to control another, (2) is directly or indirectly controlled by another, (3) is directly or indirectly
controlled by a third party or parties that also controls or has the power to control another, or (4) has an
“identity of interest” with another contributor. See also, 47 C.F.R. § 1.2110(c)(5).

16

telecommunications provider and all affiliates, however, could use the safe harbor for paging
services.
Note: Annual revenues reported on the FCC Form 499-A should reflect the filer’s reporting of
revenues in each quarter on FCC Form 499-Q. For example, if a filer projected revenue based on
a safe harbor for the first two quarters and based on traffic studies for the final two quarters, the
amounts reported in the FCC Form 499-A for the first two quarters would be based on actual
billings for those quarters and the relevant safe harbors, and the amounts reported for the final
two quarters would be based on actual billings for those quarters and the traffic studies for those
quarters.
Many carriers and other providers of telecommunications now offer packages that bundle fixed
local exchange service with interstate toll service for a single price. Revenues for the whole
bundle, except for tariffed subscriber line and PICC charges, should be reported on Line 404, as
described more fully below. The portion of revenues associated with interstate and international
toll services must be identified in columns (d) and (e), respectively. Filers should make a good
faith estimate of the amounts of interstate and international revenues from bundled local/toll
service if they cannot otherwise determine these amounts from corporate records, and must make
their methodology available to the Commission or the Administrator, upon request.
Interconnected VoIP and CMRS providers may rely on traffic studies if they are unable to
determine their actual interstate and international revenues.27 In developing their traffic studies,
interconnected VoIP and CMRS providers may rely on statistical sampling to estimate the
proportion of minutes that are interstate and international. Such sampling techniques must be
designed to produce a margin of error of no more than one percent with a confidence level of
95%. If the sampling technique does not employ a completely random sample (e.g., if stratified
samples are used), then the respondent must document the sampling technique and explain why it
does not result in a biased sample. Traffic studies should include, at a minimum: (1) an
explanation of the sampling and estimation methods employed and (2) an explanation as to why
the study results in an unbiased estimate with the accuracy specified above. Mobile wireless
providers and interconnected VoIP providers should retain all data underlying their traffic studies
as well as all documentation necessary to facilitate an audit of the study data and be prepared to
make this data and documentation available to the Commission upon request. In addition, CMRS
providers that rely on traffic studies must submit those studies to the Commission and USAC for
review. Interconnected VoIP providers that rely on traffic studies must submit their traffic studies
to the Commission for prior approval.28 Until the Commission has approved an interconnected
VoIP provider’s proposed traffic study, that provider may use the interim safe harbor.
4.

Explanation of historical revenue categories

Total gross revenue reported on Line 118 should equal the total of the detail amounts reported on
Lines 115 through 117.

27

See 2006 Contribution Methodology Reform Order, 21 FCC Rcd at 7534-36, 7547, paras. 29-33, 57. See
also, Policy and Rules Concerning the Interstate, Interexchange Marketplace; Implementation of Section
254(g) of the Communications Act of 1934, as Amended; 1998 Biennial Regulatory Review – Review of
Customer Premises Equipment and Enhanced Services Unbundling Rules in the Interexchange, Exchange
Access and Local Exchange Markets, CC Docket Nos. 96-61, 98-183, Report and Order, 16 FCC Rcd
7418, 7446-48, paras. 47-51 (2001) (CPE Bundling Order).

28

See 2006 Contribution Methodology Reform Order, 21 FCC Rcd at 7547, para. 57.

17

Line 115 -- Revenues from services provided to other universal service contributors for resale. This
line should contain revenues from telecommunications services provided to resellers (i.e.,
telecommunications revenue derived from other universal service contributors). This category
comprises what is commonly-referred to as “carrier’s carrier revenues.” Filers may wish to consult
the instructions for FCC Form 499-A, Lines 303 through 314, when calculating this figure.
On an interim basis, carriers that provide telecommunications inputs to interconnected VoIP
providers must report the resulting revenues as end-user revenues and include them in their own
contribution bases on Line 116. These carriers may not exclude these revenues by invoking the
“carrier’s carrier” rule.29
Line 116 -- Universal service contribution base revenues. This line should contain end-user
telecommunications revenues (i.e., telecommunications revenues derived from entities that do not
contribute directly to universal service), except for revenue from international calls that both
originate and terminate in foreign points. Filers should consult the instructions for FCC Form 499A, Line 420, when calculating this figure.
Line 117 -- Other revenue that should not be reported in the universal service contribution base.
This line should contain revenue from international calls that both originate and terminate in foreign
points and revenues that are reportable on FCC Form 499-A, Line 418.
Line 117 should include all non-telecommunications service revenues on the reporting entity's
books as well as some revenues that are derived from telecommunications-related functions but
that should not be included in the universal service or other fund contribution bases. For example,
information services offering a capability for generating, acquiring, storing, transforming,
processing, retrieving, utilizing, or making available information via telecommunications are not
included in the universal service or other fund contribution bases. Information services do not
include any use of any such capability for the management, control, or operation of a
telecommunications system or the management of a telecommunications service. Information
services also are called enhanced services because they are offered over transmission facilities
used in interstate communications and employ computer processing applications that act on the
format, content, code, protocol, or similar aspects of the subscriber's transmitted information;
provide the subscriber additional, different, or restructured information; or involve subscriber
interaction with stored information. For example, call moderation and call transcription services
are information services. These services are exempt from contribution requirements and should
be reported on Line 117. Line 117 should include revenues from published directory and carrier
billing and collection services. Line 117 should include revenues from the sale, lease,
installation, maintenance, or insurance of customer premises equipment (CPE). Line 117 should
include inside wiring charges and inside wiring maintenance insurance. Line 117 should include
the sale or lease of transmission facilities, such as dark fiber or bare transponder capacity, that are
not provided as part of a telecommunications service or as a UNE. Line 117 should include pole
attachment revenues. Line 117 should include revenues from providing open video systems
(OVS), cable leased access, and direct broadcast satellite (DBS) services. Line 117 should
include late payment charges and charges (penalties) imposed by the company for customer
checks returned for non-payment. Line 117 should include revenues from telecommunications
services provided in a foreign country where the traffic does not transit the United States or where
the carrier is providing service as a foreign carrier, i.e. a carrier licensed in that country.
29

Starting April 1, 2007, service resold in the form of interconnected VoIP can be treated the same as
service resold as telecommunications. See also 2006 Contribution Methodology Reform Order, 21 FCC
Rcd at 7547-75-48, paras. 58-59 (This requirement is in effect for two full quarters following the effective
date of this Order.).

18

The Commission adopted two “safe harbor” methods for allocating revenue when
telecommunications and CPE/enhanced services are offered as a bundled package.30 The first
option is to report revenues from bundled telecommunications and CPE/enhanced service
offerings based on the unbundled service offering prices, with no discount from the bundled
offering being allocated to telecommunications. Alternatively, contributors may elect to treat all
bundled revenues as telecommunications revenues for purposes of determining their universal
service obligations. Filers may choose to use allocation methods other than the two described
above. Filers should realize, however, that any other allocation methods may not be considered
reasonable, and will be evaluated on a case-by-case basis in an audit or enforcement context.
Prepaid calling card providers may avail themselves of the bundled service safe harbors for
separating revenue between telecommunications and information services.31
Line 118 -- Gross billed revenues from all sources. This line should equal the sum of revenues by
type of service reported on Lines 115 through 117.
As noted above, for further detail on the types of revenues that should be reported on Lines 115
through 117, filers may wish to consult the Instructions for the FCC Form 499-A, available at the
Commission's web site (www.fcc.gov/formpage.html).
5.

Projected gross billed end-user interstate and international revenues

The projection quarter is the calendar quarter that starts two months after the filing date and finishes
five months after the filing date. Line 119 should contain projected gross-billed end-user interstate
and international revenues, including any pass-through charges for federal universal service
contributions. These amounts should be the amounts that the filer anticipates reporting on Line 116,
column (b) and column (c), in the FCC Form 499-Q filing due six months after the present filing
date. In order to estimate these amounts, the filer could review the amounts they are reporting on
Line 116 in the instant filing and amounts reported in recent filings. In addition, filers could take
into account general business conditions, new contracts covering the projection period, pricing
trends, marketing programs, expansion plans, and other relevant information. Filers must develop
good faith projections based on company procedures and policies. If the filer anticipates that
revenues are as likely to increase as decrease, then it may copy the historic values from Line 116 to
use as its projections for Line 119 or it could develop projections by trending historic values from
previous quarterly filings. Filers need not make projections for Line 119 column (a).
6.

Projected collected end-user interstate and international revenues

Line 120 should show the interstate and international revenues that the filer anticipates collecting
from customers during the projection quarter. For this purpose “collected end-user” revenues
refers to gross-billed end-user interstate and international telecommunications revenues, including
any pass-through charges for federal universal service contributions, less estimated
uncollectibles.32 We define uncollectibles as the percentage of interstate and international
telecommunications revenues that the contributor anticipates will not be collected from end-user
30

CPE Bundling Order, 16 FCC Rcd 7418.

31

See Regulation of Prepaid Calling Card Services, WC Docket No. 05-68, Declaratory Ruling, Report
and Order, 21 FCC Rcd 7290, 7298. para. 22 (2006).

32

Federal-State Joint Board on Universal Service, Memorandum Opinion and Order and Further Notice of
Proposed Rulemaking, CC Docket No. 96-45, 13 FCC Rcd 21252, 21258-60 (1998); Contribution
Methodology Order, para 32.

19

customers. This percentage should be calculated in accordance with Generally Accepted
Accounting Principles.33 Thus, uncollectibles should represent the portion of gross billed
revenues that the contributor reasonably expects will not be collected. Filers that use the accrual
method of accounting should use the percentage of billed revenues that they recognize currently
as a reserve for uncollectibles in their books of accounts. Filers that use the cash method of
accounting should base this percentage on a comparison of actual collections and billed revenues,
with the periods chosen to allow for the average delay between when services are billed and when
payments are received. The amounts shown on Line 120 should be the amounts on Line 119
reduced by the percentage of uncollectibles.
Filers will be billed based on the amounts reported on Line 120. Any revisions to these amounts
must be filed within 45 calendar days. No adjustments to billings will be made during the quarter
to reflect actual levels of billed service and actual collection rates. The Administrator will use the
actual revenue data provided by contributors on the FCC Form 499-A to perform annual true-ups
to the quarterly projected revenue data submitted by contributors during the prior calendar year.34
As necessary, the administrator will then refund or collect from contributors any over-payments
or under-payments. If the combined quarterly projected revenues reported by a contributor are
greater than those reported on its annual revenue report (Form 499-A), then a refund will be
provided to the contributor based on an average of the two lowest contribution factors for the
year. If the combined quarterly revenues reported by a contributor are less than those reported on
its annual revenue report (Form 499-A), then the administrator will collect the difference from the
contributor using an average of the two highest contribution factors from that year.
D.

Block 4: Certification.

Line 121 -- Filers may use the box in Line 121 to request nondisclosure of the revenue information
contained on the Telecommunications Reporting Worksheet. By checking this box, the officer of
the company signing the Worksheet certifies that the information contained on the Worksheet is
privileged or confidential commercial or financial information and that disclosure of such
information would likely cause substantial harm to the competitive position of the company filing
the Worksheet. This box may be checked in lieu of submitting a separate request for confidentiality
pursuant to section 0.459 of the Commission's rules.35 All decisions regarding disclosure of
company-specific information will be made by the Commission. The Commission regularly makes
publicly available the names (and Block 1 and 2 contact information) of the entities that file the
Telecommunications Reporting Worksheet.
Lines 122 through 126 -- An officer of the reporting entity must examine the data provided in the
Telecommunications Reporting Worksheet and certify that the information provided therein is
accurate and that projections provided therein represent good faith estimates based on company
procedures and policies. An officer is a person who occupies a position specified in the corporate
33

General Accepted Accounting Principles (GAAP) encompasses the conventions, rules, and procedures
necessary to define accepted practice in the preparation of financial statements in the United States. The
Financial Accounting Standards Board (FASB) is currently the primary authority to establish GAAP for all
companies. Carriers subject to the Uniform System of Accounts would derive this figure from the amount
recorded in Account 5301, Uncollectible Revenue - Telecommunications.

34

See Telecommunications Reporting Worksheet, FCC Form 499-A, OMB 3060-0855 (February 2003)
(FCC Form 499-A).

35

47 C.F.R. § 0.459. See also Examination of Current Policy Concerning the Treatment of Confidential
Information Submitted to the Commission, GC Docket No. 96-55, Report and Order, 13 FCC Rcd 24816
(1998) (listing the showings required in a request that information be withheld and stating that the
Commission may defer action on such requests until a formal request for public inspection has been made).

20

by-laws (or partnership agreement), and would typically be president, vice president for operations,
vice president for finance, comptroller, treasurer, or a comparable position. If the reporting entity is
a sole proprietorship, the owner must sign the certification. The signature on Line 122 must be in
ink.
Reporting entities have the opportunity to enter data, verify, submit and certify FCC Forms 499-A
and 499-Q online via a web-based data entry system. Company officers, who have previously
filed a signed paper form, may certify subsequent forms online without being required to submit
signed paper forms. For those officers, an electronic signature in the signature block of each form
certified by that officer will be considered the equivalent to a handwritten signature on the form.
By entering his or her electronic signature into the signature block of each form, the officer,
therefore, acknowledges that such electronic signature certifies his or her identity and attests
under penalty of perjury as to the truth and accuracy of the information contained in each
electronically signed form. Visit http://www.universalservice.org/fund-administration/forms for
more information and access to the online filing system.
A person who willfully makes false statements on the Worksheet can be punished by fine or
imprisonment under title 18 of the United States Code.36
Line 127 -- Indicate whether this filing is an original filing or a revised filing.37

36

See 18 U.S.C. § 1001.

37

See Section II-E.

21

IV.

Reminders
„

Filers are required to maintain records and documentation to justify information
reported on the Telecommunications Reporting Worksheet for three years. Filers
also must maintain records detailing the methodology used to determine
projections reported on the Telecommunications Reporting Worksheet. Upon
request, filers may be required to provide such records and documentation to the
Commission or to the administrator.

„

Is the filer affiliated with another telecommunications provider? Each legal entity
must file separately unless they qualify for filing on a consolidated basis. See
Section II-B. Each affiliate or subsidiary must show the same holding company
name on Line 105.

„

For information on filing electronically, go to http://forms.universalservice.org.

„

Provide data for all lines that apply. Show a zero for services for which the
contributor had no revenues for the filing period.

„

Contributors to universal service support mechanisms must make five FCC Form
499 filings each year. See Figure 2.

„

Wherever possible, revenue information should be taken from the contributors'
financial records. Filers also must provide projected revenue information on Line
119 through Line 120.

„

The Worksheet must be signed by an officer of the reporting entity. An officer is a
person who occupies a position specified in the corporate by laws (or partnership
agreement), and would typically be president, vice president for operations,
comptroller, treasurer, or a comparable position.

„

Do not mail the Worksheet to the FCC. See Section II-C for filing instructions.

„

Note that FCC Form 499 is one of several forms that telecommunications carriers
and other providers of interstate telecommunications may need to file. Information
concerning common filing requirements for such providers may be found on the
FCC web site, at www.fcc.gov/wcb/filing.html.

If you have questions about the Worksheet or the instructions, you may contact:
Form 499 Telecommunications Reporting
Worksheet Information
Wireline Competition Bureau
Industry Analysis and Technology Division
TTY

Form499@ universalservice.org
(888) 641-8722
(202) 418-0940
(202) 418-0484

If you have questions regarding contribution amounts, billing procedures or the mechanisms, you
may contact:
Universal Service Administrative Company
- FCC -

22

(888) 641-8722

FCC Form 499-Q Telecommunications Reporting Worksheet
Quarterly Filing for Universal Service Contributors
Block 1:

>>> Please read instructions before completing <<<
101

Contributor Identification Information

102

Legal name of reporting entity

103

IRS employer identification number

104

Name telecommunications provider is doing business as

105

Holding company [All affiliated companies should show same name here.]

106

FCC Registration Number (FRN)

107

Complete mailing address of reporting entity's
corporate headquarters

Block 2:

Approval by OMB
3060-0855

Filer 499 ID

Contact Information
First

MI

108

Person who completed this worksheet

109

Telephone number of this person

(

) -

110

Fax number of this person

(

) -

111

Email of this person

112

Billing address and billing contact person:

Last

[Bills for Universal Service contributions
will be sent to this address.]
Block 3:

Contributor Historical and Projected Revenue Information

113

Year of historical revenue information
Filing due

Historical revenues for

Projected revenues for

114

Indicate which

October 1 - December 31 (prior year)

April 1 - June 30
July 1 - September 30

February 1

quarterly filing

May 1

January 1 - March 31

this represents

August 1

April 1 - June 30

October 1 - December 31

November 1

July 1 - September 30

January 1 - March 31 (following calendar year)

Historical billed revenues with no allowance or
deductions for uncollectibles. See instructions.
115

Total
Revenues
(a)

Interstate
Revenues
(b)

117

Telecommunications provided to other universal service
contributors for resale as telecommunications or as
interconnected VoIP
End-user telecommunications revenues including any
pass-through charges for universal service contributions,
but excluding international-to-international revenues
All other goods and services

118

Gross-billed revenues from all sources [sum of above]

119

Projected gross-billed end-user interstate and international telecommunications
revenues including any pass-through charges for universal service contributions, but
excluding international-to-international revenues
Projected collected end-user interstate and international telecommunications
revenues including any pass-through charges for universal service contributions, but
excluding international-to-international revenues

116

120

International
Revenues
(c)

Column (b) and (c) not requested
for Lines 117 and 118

Block 4: CERTIFICATION: to be signed by an officer of the reporting entity

121

I certify that the revenue data contained herein are privileged and confidential and that public disclosure of such information
would likely cause substantial harm to the competitive position of the company. I request nondisclosure of the revenue
information contained herein pursuant to sections 0.459, 52.17, 54.711 and 64.604 of the Commission's Rules.

I certify that I am an officer of the above-named reporting entity, that I have examined the foregoing report and to the best of my knowledge,
information and belief, all statements of fact contained in this Worksheet are true, that said Worksheet is an accurate statement of the affairs of
the above-named company for the quarter and that the projections of gross-billed and collected revenues represent a good-faith estimate
based on company procedures and policies.
122

Signature

123

Printed name of officer

124

Position with reporting entity

125

Email of officer

126

Date

127

This filing is:

First

MI

Last

|| Required if available ||
Original filing

Revised filing [revisions due within 45 days of original filing deadline]

Do not mail checks with this form. Send this form to: Form 499 Data Collection Agent c/o USAC 2000 L Street, N.W. Suite 200 Washington DC, 20036
For additional information regarding this worksheet contact: Telecommunications Reporting Worksheet Info: (888) 641-8722 or via e-mail: [email protected]
PERSONS WILLFULLY MAKING FALSE STATEMENTS IN THE WORKSHEET CAN BE PUNISHED BY FINE OR IMPRISONMENT UNDER TITLE 18 OF THE UNITED STATES CODE, 18 U.S.C. §1001

Save time, avoid problems -- file electronically at

http://forms.universalservice.org

FCC Form 499-Q
February 2007