Regulation Change Alert

Regulation Change Alert - Universal Service Fund FAQs

What is the Universal Service Fund?
The USF is a government administered fund to support the provision of telecommunications services in rural and high cost areas, low income consumers and to schools, libraries and healthcare facilities nationwide. All telecommunications providers contribute to the USF on an equal basis. The contribution factor changes quarterly and is approximately 11% of end user revenues. In addition to USF, a few other federal fees, state USF fees and state and local taxes apply to telecommunications services.

What Governmental agency is responsible for USF?
The United States Congress authorized the FCC to implement the Universal Service Fund. The USF is mandated by Section 254 of the Telecommunications Act of 1996. The USF is administered by USAC.

Why is Communiqué Conferencing collecting this fee on audio calls?
A recent decision by the FCC dictates that all telecommunication service providers track all telecommunications revenue. To remain in compliance and in good standing, Communiqué Conferencing must file forms with USAC and pay the fee assessed by the FCC on the telecommunications revenue.

Will all conference calling companies remit USF fees on audio conferencing calls?
Yes. The June 30, 2008 FCC order clearly states that all providers of telecommunications which includes conferencing must comply with the order. The FCC has directed USAC to ensure that all conferencing service providers abide by the order.

What states and countries are impacted by the USF?
The USF applies to services billed to US customers, including both interstate and international services. Details regarding which international calls will be subject to USF are still being worked out. Generally, however, calls initiated from overseas that terminate in the United States will be subject to USF.

When will the USF fee be collected?
The June 30 and July 17, 2008 FCC orders require USAC to collect the USF fee from Communiqué Conferencing beginning on October 1, 2008. The USF charge will first appear on client invoices for conference calls made on or after October 1, 2008. Most clients will see the USF charge the invoice mailed in early November. A change notice will be sent to all clients in upcoming invoices.

Will Communiqué charge the USF to audio conference calls initiated in other countries?
If the call both originates and terminates outside of the United States, USF fees will not apply.

Is the USF based on where the company is headquartered?
No. The USF is based on end user revenues for calls subject to FCC jurisdiction. Federal USF fees apply to interstate telecommunications and calls between the United States and foreign countries. The FCC order clarified that conferencing is telecommunications. Therefore, if the conference involves a call from one state terminating in another state or calls between a foreign country and the United States, the USF fee will apply.

If I use WebEx, Live Meeting or other web conferencing through Communiqué and I begin the audio portion of the call from the web using audio integration, will the conference be subject to the USF fee?
Partially. Because the USF fee applies to all interstate telecommunications, only the audio portion of the conference is subject to the USF fee. The June 30 2008 FCC order provides that the combination of the audio bridging with other features does not shield the conference from the USF fee.

Are all of my services subject to USF fees?
No. Web conferencing services and features fees are not subject to USF fees. Only audio conferencing services are subject to USF fees.

What if I start a conference call from a cell phone?
The USF fee applies to all interstate telecommunications regardless of the device used.

Do USF fees apply to audio calls made on VOIP?
Yes. The USF fee applies to all interstate telecommunications regardless of the device used.

Will Communiqué issue a credit for the USF fee if a credit was issued on a call?
Yes. When a credit is issued, the applicable fees, surcharges and taxes assessed on the portion subject to the credit are also credited.

How much is the USF Fee Imposed by USAC?
The USF fee is set by the FCC quarterly and collected by USAC. The fee as of August 2008 is 11.4% of end user interstate and international telecommunications revenues.

Are charitable or religious groups exempt from the USF fees similar to their exemption from certain sales tax?
No. USF fees apply to all end users including not-for-profit entities.

Where do I find additional information about the USF?
Additional information may be located at www.communiqueconferencing.com/news_063008.asp.