LEGAL ALERT
Clients and Interested
Parties:
In a Public Notice
released yesterday, the Federal Communications
Commission ("FCC") announced that the Universal
Service contribution factor for the 3rd quarter
of 2009 (July 1 to September 30, 2009) will increase to
12.9% of interstate and, in most cases, international
end-user revenues. If, as expected, the FCC takes no
action to modify the proposed contribution factor,
it will become effective and apply for the 3rd quarter
of 2009.
Because the contribution
factor is now greater than 12%, the FCC has noted the
potential for some USF contributors who would not
normally qualify for the limited international revenues
exception (“LIRE”) (normally applicable to contributors
for whom interstate revenues make up 12% or less of
combined interstate and international revenues) to have
a USF contribution amount in excess of total interstate
revenues. Contributors facing these circumstances may
petition the FCC for a waiver of the usual LIRE
threshold of 12%.
For further information
regarding the contribution factor change, please see the
FCC Public Notice at the following link: http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-09-1322A1.pdf.
The FCC's Public
Notice reminds carriers that marking up federal
universal service line-item amounts above the 12.9%
contribution factor is unlawful.
If you have any
questions or require assistance regarding your USF
obligations (including petitioning the FCC for a waiver
of the LIRE threshold), please do not hesitate to
contact us.
