[Federal Register Volume 63, Number 100 (Tuesday, May 26, 1998)]
[Notices]
[Pages 28510-28511]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13812]


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FEDERAL COMMUNICATIONS COMMISSION

[CC Docket No. 96-45; DA 98-856]


Proposed Third Quarter 1998 Universal Service Contribution 
Factors

AGENCY: Federal Communications Commission.

ACTION: Notice.

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SUMMARY: The Common Carrier Bureau announces proposed universal service 
contribution factors for the third quarter of 1998. If the Commission 
takes no action regarding these proposed factors within 14 days of 
publication in the Federal Register, the projections shall be deemed 
approved by the Commission and shall be used to calculate third quarter 
universal service contributions.

DATES: If the Commission takes no action regarding these proposed 
factors by June 9, 1998, the proposed third quarter contribution 
factors will become effective.

ADDRESSES: One original and five copies of all comments responsive to 
this Public Notice must be sent to Magalie Roman Salas, Secretary, 
Federal Communications Commission, 1919 M Street, NW, Washington, DC 
20554. Three copies also should be sent to Sheryl Todd, Accounting 
Policy Division, Common Carrier Bureau, 2100 M Street, NW, 8th Floor, 
Washington, DC 20554.

FOR FURTHER INFORMATION CONTACT: Frances Downey, Accounting Policy 
Division, Common Carrier Bureau, (202) 418-7371.

SUPPLEMENTARY INFORMATION:
    In this Public Notice, the Accounting Policy Division of the Common 
Carrier Bureau announces proposed universal service contribution 
factors for the third quarter of 1998. On May 1, 1998, the Universal 
Service Administrative Company (USAC), Schools and Libraries 
Corporation (SLC), and Rural Health Care Corporation (RHCC) submitted 
the following projections of third quarter 1998 demand and 
administrative expenses:

                                               Millions of Dollars                                              
----------------------------------------------------------------------------------------------------------------
                                                                                                        Total   
                         Program                             Program    Administrative    Interest     program  
                                                              demand       expenses        income       costs   
----------------------------------------------------------------------------------------------------------------
Schools and Libraries....................................        690.0            4.4         (0.0)        694.4
Rural Health Care........................................         24.3            1.2         (0.5)         25.0
                                                          ------------------------------------------------------
      Subtotal...........................................        714.3            5.6         (0.5)        719.4
                                                          ------------------------------------------------------
High Cost................................................        414.1            0.8         (0.7)        414.2
Low Income...............................................        125.3            0.4         (1.0)        124.7
                                                          ------------------------------------------------------
      Subtotal...........................................        539.4            1.2         (1.7)        538.9
                                                          ======================================================
      Total..............................................      1,253.7            6.8         (2.2)      1,258.3
----------------------------------------------------------------------------------------------------------------

    Based on information contained in the Universal Service Worksheets, 
FCC Form 457, USAC submitted on May 1, 1998, end-user 
telecommunications revenues for the 1997 calendar year. Funding bases 
for the third and fourth quarters are determined by subtracting the 
revenues reported for January through June 1997 (on the September 
Worksheet) from the 1997 calendar year revenues reported on the March 
Worksheet. The amounts are as follows:
    Total Interstate, Intrastate, and International End-User 
Telecommunications Revenues from July 1, 1997--December 31, 1997: 
$93.534 billion.
    Total Interstate and International End-User Telecommunications 
Revenues from July 1, 1997--December 31, 1997: $34.988 billion.
    We estimate quarterly revenues by dividing the six-month revenue 
estimates listed above by two.
    Based on the figures submitted by USAC, SLC, and RHCC, the proposed 
contribution factors for the third quarter of 1998 are as follows:
    Contribution factor for the schools and libraries and rural health 
care support mechanisms:
    Total Program Costs/Contribution Base (Interstate, International, 
and Intrastate)=$0.719 billion/( $93.534 billion/2)=0.0154.
    Contribution factor for the high cost and low income support 
mechanisms:
    Total Program Costs/Contribution Base (Interstate and 
International)=$0.539 billion/($34.988 billion/2)=0.0308.
    These factors are the proposed third quarter 1998 universal service

[[Page 28511]]

contribution factors. If the Commission takes no action regarding these 
proposed factors within the 14-day period following publication in the 
Federal Register, the projections shall be deemed approved by the 
Commission and shall be used by USAC to calculate third quarter 
universal service contributions. We note that in a Public Notice 
released today, the Common Carrier Bureau seeks comment on its proposal 
to reduce the 1998 collection amounts for the schools and libraries and 
rural health care universal service support mechanisms. If the 
Commission reduces the 1998 collection amounts for these programs, the 
contribution factor proposed in this Public Notice for the schools and 
libraries and rural health care support mechanisms will be revised 
accordingly. While we have not had an opportunity to review fully the 
statement of Commissioner Furchtgott-Roth, we do take this opportunity 
to note that the 60-day congressional review period referenced in that 
statement does not apply to ``any rule promulgated under the 
Telecommunications Act of 1996 and the amendments made by that Act.''
    For further information, contact Frances Downey, Accounting Policy 
Division, Common Carrier Bureau, at (202) 418-7400.

Federal Communications Commission.
Lisa S. Gelb,
Chief, Accounting Policy Division.
[FR Doc. 98-13812 Filed 5-22-98; 8:45 am]
BILLING CODE 6712-01-P