April 2001 Announcements

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On Friday, April 27, 2001, SLD is scheduled to release funding commitments for certain Year 2 Form 471 applications. These applications were completed and/or received after the close of the Year 2 Form 471 filing window on April 6, 1999 but on or before March 31, 2000. The first wave of these commitments will include funding commitment decisions on the majority of these applications, but additional waves will be issued to complete this group of commitments. These commitments followed the processing of Year 3 applications.

The SLD has determined that sufficient funding is available to fund all applications received during this period which have passed SLD's Program Integrity Assurance review procedures.

On March 1, 2000, the SLD posted on this web site a description of the priorities for funding these Year 2 Form 471 applications; because sufficient funding is available for these applications, the priority ranking outlined in the March 1 posting is now unnecessary.

Data on these funding commitments are scheduled to be posted on April 30, 2001 to the Year 2 Data section of the Funding Commitments area of this web site.

For recurring services, the commitments cover only those services installed and delivered during Funding Year 2, which ran from July 1, 1999, to June 30, 2000. If SLD receives an invoice for payment - either a BEAR Form (Form 472) or a Service Provider Invoice Form (Form 474) - referring to these commitments and the recurring services were delivered after June 30, 2000, that invoice will not be paid.

For non-recurring services, these commitments will be available for services installed and delivered up through September 30, 2001, consistent with the extension in the FCC Order released on November 1, 2000 (DA 00-2444).

Applicants receiving these commitments should consider whether they need to file FCC Form 500, Adjustment to Funding Commitment and Modification to Receipt of Service Confirmation Form, as their immediate next step. If applicants have been waiting for these commitment letters to start non-recurring services - and if the Contract Expiration Date reported on the Form 471 has passed - SLD will not be able to process a Form 486 with an Actual Service Start Date after the Contract Expiration Date. Such applicants should first negotiate a contract extension with the service provider and then file a Form 500 to notify SLD of the new Contract Expiration Date. Such applicants may then file a Form 486 notifying SLD of the Actual Service Start Date. After that, invoices may be submitted to SLD for payment.

Click here to view a copy of FCC Form 500. Click here to view a copy of FCC Form 486.

SLD has developed a new procedure for administering Service Substitutions as a result of a February 2001 FCC decision (DA 01-387, released on 02/14/2001).

Service Substitutions involve a modification in products or services from those specified in the Form 471. The same functionality contained in the original description of services must be maintained; the applicant is requesting changes only in the specific technical components involved.

Following are the key points of the new procedure:

• Service Substitutions may involve more comprehensive changes to a Funding Request than the component-to-component changes allowed under the old procedure.
• Applicants must request a minor modification to an existing contract by completing and submitting Blocks 1, 2 and 6 of a paper Form 471.
• Applicants no longer need to file Form 500 if a Service Substitution would result in a reduction in the total funding commitment - SLD will reduce the commitment as part of the substitution approval process.
• Service Providers are encouraged (but not required) to submit information to SLD when changes in their products or services affect a substantial number of applicants.

The FCC has indicated specific criteria that must be met for a Service Substitution request to be approved. This information and instructions for requesting service substitutions are provided in the document entitled Service Substitutions posted in the Reference Area of this web site. Note also that the outdated document "Service Changes" has been removed from the Reference Area.

The Federal Communications Commission (FCC) recently modified the Universal Service Fund (USF) contribution methodology to reduce the interval between the accrual of revenues and the assessment of universal service contributions based on those revenues. Currently, contributions to the USF are based on a carrier’s interstate and international end-user revenue generated 12 months prior. The new methodology shortens the lag from 12 months to six months.

In order to administer this change, the Order modifies reporting requirements for USF contributors. Going forward, the FCC eliminated the semi-annual September 1 FCC Form 499-S. However, in addition to the annual FCC Form 499-A due each April, four quarterly FCC Form 499-Q worksheets will be filed throughout the year. Form due dates, revenue data reported and invoicing time period are summarized below:

*For subsequent years, the first quarter revenue reporting will be due on May 1.

Telecommunications providers qualifying for the USF De Minimis Exemption (using process outlined on page 5 of the Form 499-Q instructions) do not need to complete the Form 499-Q. However, for all other USF contributors, the first Form 499-Q must be submitted to USAC by Friday May 11, 2001. We advise each carrier to review the instructions prior to completing the form. The FCC has made significant changes in the format and content of customer information reported.