LAW OFFICES OF THOMAS K. CROWE, P.C.
LEGAL ALERT
Clients and Interested Parties:
Recently, the Federal Communications
Commission (FCC) noted special
responsibilities wholesale providers of
telecommunications services have regarding
the Universal Service contributions of
their resale customers. First, wholesale
providers are required to confirm that
their resale customers have registered
under the FCC’s Universal Service Fee (USF)
program. If a reseller does not certify
to the wholesale provider that it directly
contributes to USF programs, the wholesale
provider will likely assess pass-through
USF charges to that reseller customer, or
potentially face financial or regulatory
liabilities. (For more information,
please see
www.tkcrowe.com/exemption_certs.html.)
Second, wholesale providers must supply
their resale customers annually with a USF
exemption certificate as described in FCC
Form 499-A instructions. To preserve
their exemption from wholesale provider
USF pass through charges, resale customers
must, in turn, submit the exemption
certificate back to the wholesale provider
with certain, specific information. The
exemption certificate must include updated
contact information for resellers.
Additionally, the certificate returned to
the wholesale provider must contain a
signed certification, using specific
language, from each reseller regarding USF
contributions. Wholesale providers, in
addition to obtaining the certification
annually, will need to verify the USF
contribution status of its reseller on the
FCC’s website and must print out and
retain a copy of the FCC’s website
indication. The rules require USF
contributors to retain “all documents and
records that they may require to
demonstrate to auditors that their
contributions were made in compliance with
program rules” for five years. These
documents include financial statements,
accounting records, historical customer
records, general ledgers, and all other
relevant documentation. Failure to adhere
to these rules could result in USF charges
to the wholesale provider, as well as fees
and penalties.
Because wholesale providers must now
annually verify their reseller’s USF
contribution status, this is a good time
for both wholesaler providers and
resellers of telecommunications services
to review their preparedness to meet these
obligations. Additionally, contracts
between wholesale providers and resellers
may already address USF contribution
obligations and can increase the
complexity of preparing exemption
certificates.
Please contact us if you have questions
about, or need assistance with, the FCC’s
Universal Service exemption certificate
requirements.
Thomas K. Crowe, Principal "firm@tkcrowe.com"
Law Offices of Thomas K. Crowe, P.C.
1250 24th Street, N.W.
Suite 300
Washington, D.C. 20037
(202) 263-3640 (voice)
(202) 263-3641 (fax)
www.tkcrowe.com
This Legal Alert is provided for informational purposes only,
and is intended neither to provide nor to
substitute for legal advice. This Legal
Alert may be forwarded or redistributed on
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