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 REGULATORY  FEES  FACT  SHEET  Federal  Communications  Commission  445  12  th  St.,  S.  W. 
 Washington,  D.  C.  20554  July  2004 


 WHAT  YOU  OWE    INTERSTATE  TELECOMMUNICATIONS  SERVICE  PROVIDERS  (ITSPs)  FOR  FY  2004 
 This  Fact  Sheet  provides  information  for  interstate  telecommunications  service  providers  (ITSPs)  to  help  them  prepare  and  pay  their  ITSP  regulatory  fees.  Telecommunications  providers  typically 
 identify  themselves  on  FCC  Form  499-  A  filings  using  one  or  more  of  the  following  categories:  1 
 All  Distance  --  provides  fixed  local  exchange  services  and  interstate  long  distance  services  to  end  users  for  a  flat  rate  (may  also  include  intrastate  toll). 


 CAP/  CLEC  (Competitive  Access  Provider/  Competitive  Local  Exchange  Carrier)  --  competes  with  incumbent  local  exchange  carriers  (LECs)  to  provide  local  exchange  services,  or  telecommunications 
 services  that  link  customers  with  interexchange  facilities,  local  exchange  networks,  or  other  customers,  other  than  coaxial  cable  providers. 


 Coaxial  Cable  --  uses  coaxial  cable  (cable  TV)  facilities  to  provide  local  exchange  services  or  telecommunications  services  that  link  customers  with  interexchange  facilities,  local  exchange 
 networks,  or  other  customers. 
 Incumbent  LEC  --  provides  local  exchange  services.  An  incumbent  LEC  generally  is  a  carrier  that  was  at  one  time  franchised  as  a  monopoly  service  provider.  See  47  U.  S.  C.  251(  h). 


 Interexchange  Carrier  (IXC)  --  provides  long  distance  telecommunications  services  substantially  through  switches  or  circuits  that  it  owns  or  leases. 
 Local  Reseller  --  provides  local  exchange  or  fixed  telecommunications  services  by  reselling  services  of  other  carriers. 
 Operator  Service  Provider  (OSP)  --  serves  customers  needing  the  assistance  of  an  operator  to  complete  calls,  or  needing  alternate  billing  arrangements  such  as  collect  calling. 
 1  If  you  timely  filed  an  FCC  499-  A,  in  2004,  you  will  receive  this  Factsheet  as  part  of  a  package  that  includes  a  pre-completed 
 FCC  Form  159-  W  that  also  includes  Form  159  information.  If  the  pre-  completed  information  is  correct,  complete  the  form  and  use  it  to  pay  your  ITSP  regulatory  fee.  If  the  information  is  incorrect,  you  may  enter  corrections 


 on  the  pre-  completed  form  rather  than  completing  one  of  the  enclosed  blank  forms. 
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 Payphone  Service  Provider  --  provides  customers  access  to  telephone  networks  through  payphone  equipment,  special  teleconference  rooms,  etc.  Payphone  service  providers  also  are  referred  to  as 
 payphone  aggregators. 
 Prepaid  Card  --  provides  prepaid  calling  card  services  by  selling  prepaid  calling  cards  to  the  public  or  to  retailers.  Prepaid  card  providers  typically  resell  the  toll  service  of  other  carriers  and  determine 
 the  price  of  the  service  by  setting  the  price  of  the  card  and  controlling  the  number  of  minutes  that  can  be  used  by  the  card. 


 Private  Service  Provider  --  offers  telecommunications  to  others  for  a  fee  on  a  non-  common  carrier  basis.  This  would  include  a  company  that  offers  excess  capacity  on  a  private  system  that  it  uses 
 primarily  for  internal  purposes.  This  category  does  not  include  Specialized  Mobile  Radio  operators. 
 Shared-  Tenant  Service  Provider  /Building  LEC  --  manages  or  owns  a  multi-  tenant  location  that  provides  telecommunications  services  or  facilities  to  the  tenants  for  a  fee. 


 Toll  Reseller  --  provides  long  distance  telecommunications  services  primarily  by  reselling  the  long  distance  telecommunications  services  of  other  carriers. 
 Other  Local  and  Other  Toll  Service  Providers  --  other  providers  of  local  exchange  or  toll  services,  including  private  service  providers  (which  offer  telecommunications  services  to  others  and  includes 
 companies  that  offer  excess  capacity  on  a  private  system  that  is  used  primarily  for  internal  purposes)  and  shared  tenant  service  providers  (which  manage  or  own  multi-  tenant  locations  that  provide 
 telecommunications  services  or  facilities  to  tenants  for  a  fee.) 
 In  its  FY  1996  Regulatory  Fee  Report  and  Order,  the  Commission  amended  its  rule  regarding  the  Telecommunications  Relay  Service  Fund  administrator  to  permit  the  National  Exchange  Carrier 
 Association  (NECA)  to  process  regulatory  fees  on  behalf  of  its  pooling  exchange  carriers  and  to  submit  their  consolidated  fees  to  our  lockbox  bank  in  a  single  payment  instrument.  However,  we  remind 
 entities  subject  to  regulatory  fee  payment  that  the  regulatee,  not  an  agent  such  as  NECA,  is  responsible  for  ensuring  that  payment  is  made,  and  that  there  is  a  penalty  for  not  submitting  the  entire  fee  in  a 
 timely  manner. 
 Fee  Payment  Amount  and  Payment  Type  Code  for  ITSPs 
 Fee  Payment  Amount:  $0.00218  per  dollar  of  subject  revenue  Payment  Type  Code:  0472 


 Where  to  Send  Payment: 
 If  you  are  sending  in  your  payment  along  with  your  Form  159-  W,  and  it  has  a  bill  number  on  it,  please  send  the  form  and  your  payment  to: 


 Federal  Communications  Commission  Regulatory  Fees 
 P.  O.  Box  358365 
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 Pittsburgh,  PA  15251-  5365  If  you  are  sending  in  your  payment  along  with  your  Form  159-  W,  and  there  is  no  bill  number  on  it, 
 please  send  the  form  and  your  payment  to: 
 Federal  Communications  Commission  Regulatory  Fees 
 P.  O.  Box  358835  Pittsburgh,  PA  15251-  5835 


 FCC  Form  159-  W  and  FCC  Form  499-  A 
 Most  ITSP  providers  are  receiving  this  Notice  as  part  of  a  billing  package.  The  first  page  of  the  package  consists  of  a  bill  that  includes  a  pre-  filled  FCC  Form  159  Remittance  Advice  Form  and  a 
 Regulatory  Fee  Worksheet  that  shows  how  the  bill  was  calculated.  The  bill  is  based  on  information  that  you  had  previously  provided  on  FCC  Form  499-  A.  Your  FCC  Form  499-  A  was  due  on  April  1, 
 2004.  The  enclosed  FCC  prepared  Form  159-  W  is  based  on  the  information  in  your  FCC  Form  499-  A,  including  any  updates  processed  as  of  June  30,  2004. 


 If  you  agree  with  the  dollar  amounts  on  the  enclosed  pre-  filled  FCC  Form  159,  please  sign  it  and  submit  it  with  your  payment.  If  the  Applicants  FRN-  CORESID  or  the  companys  name/  address 
 information  needs  to  be  filled  in  or  corrected  on  your  enclosed  bill,  please  supply  or  correct  that  information  on  the  bill.  You  need  not  prepare  a  separate  FCC  Form  159. 


 If  your  total  regulatory  fee  obligation,  including  the  ITSP  fee  and  other  FCC  regulatory  fees,  totals  less  than  $10,  you  need  not  pay  or  make  any  filing. 
 If  you  received  an  ITSP  Fee  Notification  rather  than  a  bill,  then  based  on  information  in  your  FCC  Form  499-  A,  you  do  not  owe  an  ITSP  fee.  Verify  the  information  in  the  notification.  If  it  is 
 correct,  then  you  need  not  make  a  filing. 
 If  you  disagree  with  the  dollar  amounts  on  the  enclosed  bill  or  if  you  owe  an  ITSP  regulatory  fee  but  did  not  receive  a  bill,  you  must:  (1)  complete  the  enclosed  blank  FCC  Form  159-  W  and  the 
 enclosed  blank  FCC  Form  159,  (2)  submit  these  forms  to  the  FCC  along  with  your  most  recently  filed  FCC  Form  499-  A  Telecommunications  Reporting  Worksheet,  and  (3)  pay  the  amount  that  you 
 calculate.  If  you  also  need  to  correct  your  FCC  Form  499-  A,  you  must  file  corrections  using  the  procedures  specified  in  the  form  instructions.  The  copy  that  you  enclose  with  your  regulatory  fee 
 payment  will  not  be  used  to  update  the  FCC  Form  499-  a  database. 
 Question  1.  What  is  the  FCC  Form  499-  A  Telecommunications  Reporting  Worksheet? 
 As  required  under  the  Communications  Act  of  1934,  as  amended,  2  the  Commission  has  established,  in  a  series  of  separate  proceedings,  procedures  to  finance  interstate  telecommunications  relay 
 services  (TRS),  universal  service  support  mechanisms,  administration  of  the  North  American  Numbering  Plan  (NANPA),  and  shared  costs  of  local  number  portability  (LNPA).  To  accomplish 


 2  47  U.  S.  C.    151,  225,  251,  254. 
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 these  Congressional  directed  objectives,  contributions  are  collected  from  all  telecommunications  carriers  providing  interstate  telecommunications  and  certain  other  providers  of  telecommunications. 
 In  1999,  the  Commission  amended  its  rules  so  that  for  the  purpose  of  determining  their  contribution(  s),  contributors  to  these  mechanisms  need  only  file  the  FCC  Form  499-  A 
 Telecommunications  Reporting  Worksheet.  3  The  FCC  Form  499-  A  is  filed  by  interstate  service  providers  each  year  on  April  1.  A  copy  of  the  form  and  instructions  can  be  downloaded  at 
 http://  www.  fcc.  gov/  formpage.  html. 
 Question  2.  Which  companies  must  file  an  FCC  Form  499-  A? 
 All  providers  of  telecommunications  services  within  the  United  States,  with  very  limited  exceptions,  must  file  an  FCC  Form  499-  A.  4  For  this  purpose,  the  United  States  is  defined  as  the 
 contiguous  United  States,  Alaska,  Hawaii,  American  Samoa,  Baker  Island,  Guam,  Howland  Island,  Jarvis  Island,  Johnston  Atoll,  Kingman  Reef,  Midway  Island,  Navassa  Island,  the  Northern  Mariana 
 Islands,  Palmyra,  Puerto  Rico,  the  U.  S.  Virgin  Islands,  and  Wake  Island.  As  a  general  matter,  each  legal  entity  that  provides  interstate  telecommunications  services  for  a  fee,  including  each  affiliate  or 
 subsidiary  of  an  entity,  must  complete  separately  and  file  a  copy  of  the  FCC  Form  499-  A.  The  Commission,  however,  has  adopted  an  exception  to  the  separate  legal-  entity  requirement,  which 
 enables  contributors  meeting  certain  criteria  to  file  the  FCC  Form  499-  A  on  a  consolidated  basis. 
 For  purposes  of  determining  whether  an  entity  provides  telecommunications,  please  note  that  the  term  "telecommunications"  means  the  transmission,  between  or  among  points  specified  by  the  user, 
 of  information  of  the  user's  choosing,  without  change  in  the  form  or  content  of  the  information  as  sent  and  received.  For  the  purpose  of  filing,  the  term  "interstate  telecommunications"  includes,  but 
 is  not  limited  to,  the  following  types  of  services:  wireless  telephony  including  cellular  and  personal  communications  services  (PCS);  paging  and  messaging  services;  dispatch  services;  mobile  radio 
 services;  operator  services;  access  to  interexchange  service;  special  access;  wide  area  telecommunications  services  (WATS);  subscriber  toll-  free  services;  900  services;  message 
 telephone  services  (MTS);  private  line;  telex;  telegraph;  video  services;  satellite  services;  and  resale  services.  Note,  for  example,  that  all  local  exchange  carriers  provide  access  services  and,  therefore, 
 provide  interstate  telecommunications. 
 Note:  entities  that  offer  interstate  telecommunications  for  a  fee  to  the  public,  even  if  only  to  a  narrow  or  limited  class  of  users  that  utilize  their  services,  must  file  the  FCC  Form  499-  A  and  are 
 subject  to  the  universal  service  contribution  requirement.  This  includes  entities  that  provide  interstate  telecommunications  to  entities  other  than  themselves  for  a  fee  on  a  private,  contractual 
 basis.  In  addition,  owners  of  pay  telephones,  sometimes  referred  to  as  "pay  telephone  aggregators," 


 3  1998  Biennial  Regulatory  Review  --  Streamlined  Contributor  Reporting  Requirements  Associated  with  Administration 
 of  Telecommunications  Relay  Services,  North  American  Numbering  Plan,  Local  Number  Portability,  and  Universal  Service  Support  Mechanisms,  CC  Docket  No.  98-  171,  Report  and  Order,  14  FCC  Rcd  16602  (1999)  (Contributor 


 Reporting  Requirements  Order). 
 4  Section  254(  d)  applies  not  only  to  every  telecommunications  carrier  that  provides  interstate  telecommunications 
 services  but  also  to  certain  other  providers  of  interstate  telecommunications.  47  U.  S.  C.  254(  d)  (emphasis  added). 
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 must  file  this  worksheet.  Most  telecommunications  carriers  must  file  this  worksheet  even  if  they  qualify  for  the  de  minimis  exemption  under  the  Commission's  rules  for  universal  service.  5 
 Question  3.  Should  all  FCC  Form  499-  A  filers  also  pay  ITSP  regulatory  fees? 
 No.  Interstate  service  providers  that  have  mobile  service  or  satellite  service  revenues  but  that  do  not  have  interstate  local  revenues  or  interstate  toll  revenues  are  exempt.  Interstate  service  providers  that 
 provide  service  to  only  other  carriers  are  exempt.  Governmental  entities  are  also  exempt.  Entities  that  are  tax  exempt  under  501  of  the  Internal  Revenue  Code  are  exempt.  Carriers  whose  total 
 regulatory  fee  payment  obligation  would  be  less  than  $10  are  also  exempt.  However,  the  vast  majority  of  FCC  Form  499-  A  filers  are  required  to  pay  ITSP  regulatory  fees. 


 Question  4.  Should  a  carrier  make  a  regulatory  fee  payment  if  it  has  not  filed  an  FCC  Form  499-  A? 
 Yes.  If  a  telecommunications  carrier  provided  interstate  telecommunications  services  in  2003,  then  it  should  have  filed  an  FCC  Form  499-  A,  and  it  must  also  pay  the  appropriate  regulatory  fee 
 payments.  The  FCC  Form  499-  A  was  due  on  April  1,  2004  and  should  have  contained  revenue  information  for  calendar  year  2003.  Carriers  who  have  not  yet  filed  the  FCC  Form  499-  A  should 
 contact  NECA  at  (973)  560-  4400  in  order  to  obtain  a  filing  package  and  to  be  assigned  a  6-  digit  Filer  499  ID  number.  If  a  carrier  has  forgotten  its  Filer  499  ID,  it  may  contact  the  Universal  Service 
 administrator  at  (973)  560-  4400,  or  it  may  access  the  Commissions  online  carrier  Locator:  http://  gullfoss2.  fcc.  gov/  cib/  form499/  499a.  cfm  . 


 Question  5.  What  types  of  revenues  are  reported  on  the  FCC  Form  499-  A? 
 The  FCC  Form  499-  A  requires  filers  to  disclose  all  revenues  from  all  goods  and  services,  including  revenues  from  non-  regulated  and  non-  telecommunications  services.  Detailed  information  is 
 submitted  for  telecommunications  services  provided  to  other  carriers,  for  telecommunications  provided  to  end  users,  and  for  other  goods  and  services.  The  detailed  information  is  used  to  classify 
 revenues.  Only  certain  revenues  are  subject  to  the  ITSP  regulatory  fee. 


 5  See  Federal-  State  Joint  Board  on  Universal  Service,  1998  Biennial  Regulatory  Review    Streamlined  Contributor 
 Reporting  Requirements  Associated  with  Administration  of  Telecommunications  Relay  Service,  North  American  Numbering  Plan,  Local  Number  Portability,  and  Universal  Service  Support  Mechanisms,  Telecommunications  Services 


 for  Individuals  with  Hearing  and  Speech  Disabilities,  and  the  Americans  with  Disabilities  Act  of  1990,  Administration  of  the  North  American  Numbering  Plan  Cost  Recovery  Contribution  Factor  and  Fund  Size,  Number  Resource 
 Optimization,  Telephone  Number  Portability,  Truth-  in-  Billing  and  Billing  Format,  CC  Docket  Nos.  96-  45,  98-  171,  90-571,  92-  237,  99-  200,  95-  116,  98-  170,  Further  Notice  of  Proposed  Rulemaking  and  Report  and  Order,  17  FCC  Rcd  3752 
 (2002). 
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 Question  6.  When  calculating  the  ITSP  regulatory  fee,  what  kind  of  costs  can  be  deducted  from  revenues  that  appear  on  FCC  Form  499-  A? 
 None.  The  ITSP  regulatory  fee  is  based  on  interstate  and  international  end-  user  revenues  for  local  and  most  toll  services.  Other  types  of  revenues  provided  on  FCC  Form  499-  A  are  excluded.  Filers 
 are  not  allowed  to  deduct  any  expenses  from  subject  end-  user  revenues. 
 Question  7.  Where  can  I  call  to  get  help  calculating  my  ITSP  regulatory  fee? 


 Call  the  FCC  CORES  Help  Desk  at  (877)  480-  3201,  and  select  Option  4.  Do  not  complete  this  form  if  you  have  received  an  ITSP  bill  and  the  amounts  are  correct.  File  that 
 form,  instead. 
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 Approved  by  OMB  3060-  0949 
 FCC  FORM  159-  W  INTERSTATE  TELEPHONE  SERVICE  PROVIDER  WORKSHEET 


 Payer  Name:  Filer  499  ID  (FCC  Form  499-  A,  Line  101): 


 Calendar  Year  2003  Revenue  Information  (show  amounts  in  whole  dollars) 
 1  Service  provided  by  U.  S.  carriers  that  both  originates  and  terminates  in  foreign  points.  FCC  Form  499-  A,  Line  412  (e) 
 2  Interstate  end-  user  revenues  from  all  telecommunications  services.  FCC  Form  499-A,  Line  420  (d) 
 3  International  end-  user  revenues  from  all  telecommunications  services  except  international-  to-  international.  FCC  Form  499-  A,  Line  420  (e) 
 4  Total  end-  user  revenues  (Sum  of  lines  1,  2  and  3)  Also  enter  this  number  on  Block  (28A)  -  FCC  Code  1. 
 5  End-  user  interstate  mobile  service  monthly  and  activation  charges.  FCC  Form  499-  A,  Line  409  (d) 
 6  End-  user  international  mobile  service  monthly  and  activation  charges.  FCC  Form  499-  A,  Line  409  (e) 
 7  End-  user  interstate  mobile  service  message  charges  including  roaming  charges  but  excluding  toll  charges.  FCC  Form  499-  A,  Line  410  (d) 
 8  End-  user  international  mobile  service  message  charges  including  roaming  charges  but  excluding  toll  charges.  FCC  Form  499-  A,  Line  410  (e) 
 9  End-  user  interstate  satellite  services.  FCC  Form  499-  A,  Line  416  (d)  10  End-  user  international  satellite  services.  FCC  Form  499-  A,  Line  416  (e) 
 11  Surcharges  on  mobile  and  satellite  services  identified  as  recovering  universal  service  contributions  and  included  in  Line  403  (d)  or  403  (e)  on  your  FCC  Form  499-  A. 
 Note:  You  may  not  include  in  Block  (11)  universal  service  pass-  through  surcharges  applied  to  local  or  toll  services,  nor  any  surcharges  identified  as 
 intrastate  surcharges.  12  Interstate  and  international  revenues  from  resellers  that  do  not  contribute  to  USF. 
 FCC  Form  499-  A,  Line  511  (b)  13  Total  excluded  end-  user  revenues.  (Sum  lines  5  through  12.) 
 Also  enter  this  number  on  Block  (29A)    FCC  Code  2.  14  Total  subject  revenues.  (Line  4  minus  Line  13) 
 Also  enter  this  number  on  Block  (25A)    Quantity.  15  Interstate  telecommunications  service  provider  fee  factor  .00218 
 16  2003  Regulatory  Fee  (Line  14  times  Line  15).  Also  enter  this  number  on  Block  (27A)    Total  Fee.  You  are  exempt  from  filing  if  the  sum  of  all  regulatory  fees  due 
 on  Line  16  is  less  than  $10.  If  you  file,  using  this  form,  you  must  also  complete  an  FCC  Form  159,  and  include  a  copy  of  this  FCC  Form  159-  W  with  your  filing. 


 FCC  FORM  159-  W  July  2004 
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 APPROVED  BY  OMB  3060-  0949 
 FCC  NOTICE  TO  INDIVIDUALS  REQUIRED  BY  THE  PAPERWORK  REDUCTION  ACT 
 The  public  reporting  for  this  collection  of  information  is  estimated  to  average  15  minutes  per  response,  including  the  time  for  reviewing  instructions,  searching  existing  data  sources,  gathering 
 and  maintaining  the  required  data,  and  completing  and  reviewing  the  collection  of  information.  If  you  have  any  comments  on  this  burden  estimate,  or  how  we  can  improve  the  collection,  please  write 
 to  the  Federal  Communications  Commission,  AMD-  PERM,  Paperwork  Reduction  Project  (3060-  0949),  Washington,  DC  20554.  We  will  also  accept  your  comments  via  the  Internet  if  you  send 
 them  to  jboley@  fcc.  gov.  PLEASE  DO  NOT  SEND  COMPLETED  FORMS  TO  THIS  ADDRESS. 
 You  are  not  required  to  respond  to  a  collection  of  information  sponsored  by  the  federal  government,  and  the  government  may  not  conduct  or  sponsor  a  collection,  unless  it  displays  a  currently  valid 
 OMB  control  number.  This  collection  has  been  assigned  an  OMB  control  number  of  3060-  0949. 
 THE  FOREGOING  NOTICE  IS  REQUIRED  BY  THE  PAPERWORK  REDUCTION  ACT  OF  1995,  P.  L.  104-  13,  OCTOBER  1,  1995,  44  U.  S.  C.  SECTION  3507. 


 FCC  FORM  159-  W  July  2004 
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