[Federal Register Volume 62, Number 228 (Wednesday, November 26, 1997)]
[Notices]
[Pages 63175-63176]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31116]
[[Page 63175]]
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FEDERAL COMMUNICATIONS COMMISSION
[CC Docket No. 96-45; DA 97-2392]
Universal Service
AGENCY: Federal Communications Commission.
ACTION: Notice.
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FOR FURTHER INFORMATION CONTACT: Diane Law, Common Carrier Bureau,
Accounting and Audits Division, Universal Service Branch, (202) 418-
7400, or via E-mail to ``[email protected]''.
SUPPLEMENTARY INFORMATION:
Released: November 13, 1997.
In this Public Notice, the Accounting and Audits Division announces
the proposed universal service contribution factors for the first
quarter of 1998.
In the Universal Service Order released on May 8, 1997, the
Commission established new federal universal service support mechanisms
consistent with the Telecommunications Act of 1934, as amended. (See
Federal-State Joint Board on Universal Service, CC Docket No. 96-45,
Report and Order, FCC 97-157 (62 FR 32862, June 17, 1997)). The
Commission required all telecommunications carriers that provide
interstate telecommunications services, providers of interstate
telecommunications, and payphone service providers to contribute to the
federal universal service support mechanisms. The Commission found that
contributions for the schools, libraries, and rural health care
programs would be based on interstate, intrastate, and international
end-user telecommunications revenues. The Commission also found that
contributions for the high cost, rural, and insular and low-income
programs would be based on interstate and international end-user
telecommunications revenues.
On July 18, 1997, the Commission released an Order directing the
National Exchange Carrier Association (NECA) to create an independently
functioning not-for-profit subsidiary, the Universal Service
Administrative Company (USAC), through which it will administer
temporarily certain aspects of the federal universal service support
mechanisms. The Commission also directed NECA to create two
independent, not-for-profit entities, Schools and Libraries Corporation
and Rural Health Care Corporation, to administer certain aspects of the
schools, libraries, and rural health care programs of the federal
support mechanisms. The Commission instructed USAC, Schools and
Libraries Corporation, and Rural Health Care Corporation to submit
projections of demand and administrative expenses for their respective
programs for the first quarter of 1998 to the Commission at least sixty
days before the start of the first quarter of 1998. USAC also must
compile total interstate, intrastate, and international end-user
telecommunications revenues and submit that information to the
Commission. The Commission stated that it would publish these figures
and the proposed quarterly contribution factors in a Public Notice.
(See Changes to the Board of Directors of the National Exchange Carrier
Association, Inc., Federal-State Joint Board on Universal Service,
Report and Order and Second Order on Reconsideration, FCC 97-253 (62 FR
41294, August 1, 1997)).
On October 31, 1997, USAC, Schools and Libraries Corporation, and
Rural Health Care Corporation submitted projections of demand and
administrative expenses for their respective programs for the first
quarter of 1998. Those figures are as follows:
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Total
Program program
Program demand Administrative expenses Interest income costs
(million) (millions)
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Schools and Libraries Program... $299.1 $2.7 million............ ($1.8 million)............ $300.0
Rural Health Care Program....... 98.4 2.2 million............. (605,000)................. 100.0
High Cost Program............... 434.0 1.1 million............. (2.8 million)............. 432.3
Low Income Program.............. 135.7 600,000................. (900,000)................. 136.0
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Totals.................... 967.2 6.6 million............. (6.1 million)............. 968.3
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Based on information contained in the Universal Service Worksheets,
FCC Form 457, USAC submitted the following information regarding end-
user telecommunications revenues on November 13, 1997:
Total Interstate and International End-User Telecommunications
Revenues from January 1, 1997-June 30, 1997: $35.001 billion;
Total Interstate, Intrastate, and International End-User
Telecommunications Revenues from January 1, 1997--June 30, 1997:
$89.827 billion.
To calculate the proposed quarterly contribution factors, the
Bureau divided the combined total demand projections by the appropriate
six-month contribution base. Based on USAC's recommendation, to account
for possible uncollectible contributions and possible errors in the
projections of demand and administrative expense, the Accounting and
Audits Division decreased the contribution base totals submitted by
USAC by two percent. Based on the figures submitted by USAC, Schools
and Libraries Corporation, and Rural Health Care Corporation, the
proposed contribution factors for the first quarter of 1998 are as
follows:
Contribution factor for interstate and international end-user
telecommunications revenues: 0.0166. This figure was calculated by
dividing $568 million total projected demand for the high cost and low
income programs by $34,301 million interstate and international end-
user telecommunications revenues. $34,301 million is 98 percent of the
reported $35.001 billion interstate and international end-user
telecommunications revenues contribution base.
Contribution factor for interstate, intrastate, and international
end-user telecommunications revenues: 0.0045. This figure was
calculated by dividing $400 million total projected demand for the
schools, libraries, and rural health care programs by $88,030 million
interstate, intrastate, and international end-user telecommunications
revenues. $88,030 million is 98 percent of the reported $89.827 billion
interstate, intrastate, and international end-user telecommunications
revenues contribution base.
If the Commission takes no action regarding the proposed
contribution factors by November 28, 1997, the proposed contribution
factors will be deemed approved by the Commission. Until November 28,
1997, the Commission reserves the right to modify
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these contribution factors and set the projections of demand and
administrative expenses at amounts that the Bureau determines will
serve the public interest. Once the proposed contribution factors are
deemed approved by the Commission or are modified and approved in a
subsequent Public Notice, USAC shall use the approved contribution
factors to calculate and bill first quarter universal service
contributions. USAC will send all contributors a quarterly bill for the
federal universal service support mechanisms in December of 1997.
Contributors must submit their first quarter universal service
contribution to USAC within thirty days of the date listed on their
quarterly bill. Payments must be sent to the address specified on the
quarterly bill.
Federal Communications Commission.
Timothy A. Peterson,
Deputy Division Chief, Common Carrier Bureau.
[FR Doc. 97-31116 Filed 11-24-97; 10:00 am]
BILLING CODE 6712-01-P