The FCC recently announced that the proposed universal service contribution factor for the second quarter of 2009 will increase to 0.113 or 11.3 percent.  Unless otherwise notified by our firm, clients may presume that the FCC approved the new rate, and that the new rate shall be in effect from April 1, 2009 until June 30, 2009.

Contributing telecommunications carriers may not mark up federal universal service line-item amounts above the contribution factor.  Thus, clients may not, during the second quarter of 2009, recover through a federal universal service line-item an amount that exceeds 11.3% of the interstate telecommunications charge on a customer’s bill.

Clients are reminded that the due date for USF contribution payments is shown on their USF invoices.  Interest will be assessed on clients who fail to make payment by this due date. Failure to pay contributions in a timely fashion may also subject clients to enforcement actions and other penalties.  In addition, USAC may bill clients for reasonable costs incurred in collecting overdue contributions.

Clients who have any questions about the USF contribution increase or need assistance with other USF contribution matters should contact Jonathan S. Marashlian at jsm@CommLawGroup.com or (703) 714-1300. If you have any further questions or concerns about the information contained in the attached Advisory, please contact Jonathan Marashlian at: jsm@commlawgroup.com or 703-714-1313.