§ 54.709   Computations of required contributions to universal service support
mechanisms.

   (a) Prior to April 1, 2003, contributions to the universal service
   support mechanisms shall be based on contributors' end-user
   telecommunications revenues and on a contribution factor determined
   quarterly by the Commission. Contributions to the mechanisms beginning
   April 1, 2003 shall be based on contributors' projected collected
   end-user telecommunications revenues, and on a contribution factor
   determined quarterly by the Commission.

   (1) For funding the federal universal service support mechanisms prior
   to April 1, 2003, the subject revenues will be contributors' interstate
   and international revenues derived from domestic end users for
   telecommunications or telecommunications services, net of prior period
   actual contributions. Beginning April 1, 2003, the subject revenues
   will be contributors' projected collected interstate and international
   revenues derived from domestic end users for telecommunications or
   telecommunications services, net of projected contributions.

   (2) Prior to April 1, 2003, the quarterly universal service
   contribution factor shall be determined by the Commission based on the
   ratio of total projected quarterly expenses of the universal service
   support mechanisms to the total end-user interstate and international
   telecommunications revenues, net of prior period actual contributions.
   Beginning April 1, 2003, the quarterly universal service contribution
   factor shall be determined by the Commission based on the ratio of
   total projected quarterly expenses of the universal service support
   mechanisms to the total projected collected end-user interstate and
   international telecommunications revenues, net of projected
   contributions. The Commission shall approve the Administrator's
   quarterly projected costs of the universal service support mechanisms,
   taking into account demand for support and administrative expenses. The
   total subject revenues shall be compiled by the Administrator based on
   information contained in the Telecommunications Reporting Worksheets
   described in § 54.711(a).

   (3) Total projected expenses for the federal universal service support
   mechanisms for each quarter must be approved by the Commission before
   they are used to calculate the quarterly contribution factor and
   individual contributions. For each quarter, the Administrator must
   submit its projections of demand for the federal universal service
   support mechanisms for high-cost areas, low-income consumers, schools
   and libraries, and rural health care providers, respectively, and the
   basis for those projections, to the Commission and the Office of the
   Managing Director at least sixty (60) calendar days prior to the start
   of that quarter. For each quarter, the Administrator must submit its
   projections of administrative expenses for the high-cost mechanism, the
   low-income mechanism, the schools and libraries mechanism and the rural
   health care mechanism and the basis for those projections to the
   Commission and the Office of the Managing Director at least sixty (60)
   calendar days prior to the start of that quarter. Based on data
   submitted to the Administrator on the Telecommunications Reporting
   Worksheets, the Administrator must submit the total contribution base
   to the Office of the Managing Director at least thirty (30) days before
   the start of each quarter. The projections of demand and administrative
   expenses and the contribution factor shall be announced by the
   Commission in a public notice and shall be made available on the
   Commission's website. The Commission reserves the right to set
   projections of demand and administrative expenses at amounts that the
   Commission determines will serve the public interest at any time within
   the fourteen-day period following release of the Commission's public
   notice. If the Commission take no action within fourteen (14) days of
   the date of release of the public notice announcing the projections of
   demand and administrative expenses, the projections of demand and
   administrative expenses, and the contribution factor shall be deemed
   approved by the Commission. Except as provided in § 54.706(c), the
   Administrator shall apply the quarterly contribution factor, once
   approved by the Commission, to contributor's interstate and
   international end-user telecommunications revenues to calculate the
   amount of individual contributions.

   (b) If the contributions received by the Administrator in a quarter
   exceed the amount of universal service support program contributions
   and administrative costs for that quarter, the excess payments will be
   carried forward to the following quarter. The contribution factors for
   the following quarter will take into consideration the projected costs
   of the support mechanisms for that quarter and the excess contributions
   carried over from the previous quarter. The Commission may instruct the
   Administrator to treat excess contributions in a manner other than as
   prescribed in this paragraph (b). Such instructions may be made in the
   form of a Commission Order or a public notice released by the Wireline
   Competition Bureau. Any such public notice will become effective
   fourteen days after release of the public notice, absent further
   Commission action.

   (c) If the contributions received by the Administrator in a quarter are
   inadequate to meet the amount of universal service support program
   payments and administrative costs for that quarter, the Administrator
   shall request authority from the Commission to borrow funds
   commercially, with such debt secured by future contributions.
   Subsequent contribution factors will take into consideration the
   projected costs of the support mechanisms and the additional costs
   associated with borrowing funds.

   (d) If a contributor fails to file a Telecommunications Reporting
   Worksheet by the date on which it is due, the Administrator shall bill
   that contributor based on whatever relevant data the Administrator has
   available, including, but not limited to, the number of lines
   presubscribed to the contributor and data from previous years, taking
   into consideration any estimated changes in such data.

   [ 62 FR 41305 , Aug. 1, 1997, as amended at  62 FR 65038 , Dec. 10, 1997;
    63 FR 2132 , Jan. 13, 1998;  63 FR 43098 , Aug. 12, 1998;  63 FR 70576 ,
   Dec. 21, 1998;  64 FR 41331 , July 30, 1999;  64 FR 60358 , Nov. 5, 1999;
    66 FR 16151 , Mar. 23, 2001;  67 FR 11260 , Mar. 13, 2002;  67 FR 13227 ,
   Mar. 21, 2002;  67 FR 79533 , Dec. 30, 2002;  68 FR 38642 , June 30, 2003;
    71 FR 38267 , July 6, 2006;  76 FR 73876 , Nov. 29, 2011]

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