PUBLIC NOTICE![](media/image1.png){width="0.95in"
height="0.9055555555555556in"}

FEDERAL COMMUNICATIONS COMMISSION

445 12th STREET, S.W.

WASHINGTON, D.C. 20554 **DA 01-614**

News media information 202/418-0500 Fax-On-Demand 202/418-2830 Internet:
http://www.fcc.gov ftp.fcc.gov

### Released: March 9, 2001

**Proposed Second Quarter 2001 Universal Service Contribution Factor**

CC Docket No. 96-45

In this Public Notice, the Common Carrier Bureau announces the proposed
universal service contribution factor for the second quarter of
2001.[^1]

## Rules for Calculating the Contribution Factor

Contributions to the federal universal service support mechanisms are
determined using a quarterly contribution factor calculated by the
Commission. Under section 54.709 of the Commission's rules, the
Commission shall calculate the quarterly contribution factor based on
the ratio of total projected quarterly costs of the universal service
support mechanisms to total end-user interstate and international
telecommunications revenues.[^2]

## USAC Projections of Demand and Administrative Expenses

Pursuant to section 54.709(a)(3) of the Commission's rules,[^3] the
Universal Service Administrative Company (USAC) submitted the following
projections of demand and administrative expenses for the second quarter
of 2001:[^4]

(\$ millions)

+---------------+---------+--------+---------+----------+------------+
| Program       | Pr      | Admin. | Appl    | App      | Total      |
|               | ojected | Ex     | ication | lication | Program    |
|               | Program | penses |         | of       | Collection |
|               | Support |        | Of      | Periodic |            |
|               |         |        | I       | True-Ups |            |
|               |         |        | nterest |          |            |
|               |         |        | Income  |          |            |
+---------------+---------+--------+---------+----------+------------+
| Schools and   | 554.883 | 7.617  | (       | 3.162    | 545.738    |
| Libraries     |         |        | 19.924) |          |            |
+---------------+---------+--------+---------+----------+------------+
| Rural Health  | 1.890   | 0.770  | (0.048) | 0.013    | 2.625      |
| Care          |         |        |         |          |            |
+---------------+---------+--------+---------+----------+------------+
| High-Cost     | 653.165 | 1.681  | (1.400) | 25.259   | 678.705    |
+---------------+---------+--------+---------+----------+------------+
| Low Income    | 176.425 | 0.429  | (0.800) | (5.856)  | 170.198    |
+---------------+---------+--------+---------+----------+------------+
| TOTAL         | 1       | 10.497 | (       | 22.578   | **         |
|               | 386.363 |        | 22.172) |          | 1397.266** |
+---------------+---------+--------+---------+----------+------------+

**[USAC Projections of Industry Revenues]{.underline}**

USAC submitted estimated end-user telecommunications revenues for
January through June 2000 based on information contained in the
September 2000 Telecommunications Reporting Worksheet (FCC Form
499-S).[^5] The amount is as follows:

Total Interstate and International End-User Telecommunications Revenues

from January 1, 2000 -- June 30, 2000: \$41.014700 billion

## Contribution Base

To determine the quarterly contribution base, we first divide the
six-month estimate of interstate and international end-user
telecommunications revenues by two. Then, we decrease the revenue
estimate by one percent to account for uncollectible contributions.[^6]
Accordingly, the quarterly contribution base for the second quarter of
2001 is as follows:

Quarterly Contribution Base for Universal Service Support Mechanisms

(Six Month Interstate and International Revenues / 2) - Uncollectibles

(\$41.014700 billion / 2) - 1%

\$20.302277 billion

**[Proposed Contribution Factor]{.underline}**

Using this quarterly contribution base, and the total program collection
requirement from the table above, the proposed contribution factor for
the second quarter of 2001 is as follows:

Contribution Factor for Universal Service Support Mechanisms

Total Program Collection / Quarterly Contribution Base

\$1.397266 billion / \$20.302277 billion

**0.068823**

If the Commission takes no action regarding the proposed contribution
factor within the 14-day period following release of this Public Notice,
the contribution factor shall be deemed approved by the Commission.[^7]
USAC shall then use the contribution factor to calculate universal
service contributions for the second quarter of 2001.

For further information, contact Gregory W. Guice or Anita Cheng,
Accounting Policy Division, Common Carrier Bureau, at (202) 418-7400,
TTY (202) 418-0484.

[^1]: *See* 47 C.F.R. § 54.709(a).

[^2]: *See* 47 C.F.R. § 54.709(a)(2).

[^3]: 47 C.F.R. § 54.709(a)(3).

[^4]: *See* Federal Universal Service Support Mechanisms Fund Size
    Projections & Contribution Base For the Second Quarter 2001
    available at
    \<http://www.universalservice.org/overview/filings/default.asp\>
    (filed by USAC Feb. 6, 2001) (*USAC Filing for Second Quarter
    2001*). USAC's projected demand and expenses for the high cost
    universal service support mechanism include the additional demand
    and expenses resulting from the Commission's new interstate access
    universal service support mechanism. *See* *USAC Filing for Second
    Quarter 2001* at 14.

[^5]: *See USAC Filing for Second Quarter 2001* at 29-30. The revenue
    base on which contributions are assessed in the second quarter of
    2001 is derived from the revenues reported on the September 2000
    Worksheet for the period from January through June 2000.

[^6]: *See* *USAC Filing for Second Quarter 2001* at 30.

[^7]: *See* 47 C.F.R. § 54.709(a)(3).