On April 30, 2012, the FCC released the text of its Universal Service Fund ("USF") Contribution Mechanism Reform Further Notice of Proposed Rulemaking ("FNPRM"). The 182-page FNPRM seeks comment on a wide scope of alternatives to the current revenues-based contribution mechanism, and does not propose the adoption of a specific plan. Among the issues raised for comment in the FNPRM are a set of alternative contribution mechanisms (including numbers-based and connections-based mechanisms), the expansion of the pool of required contributors, and the administration of the Fund.
Specifically the FCC seeks comment on:
- The goals of USF contribution reform, with a particular emphasis on issues relating to efficiency, fairness, and sustainability;
- Who should contribute to the fund, including:
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- whether providers of specific types of services should be required to contribute, including:
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- enterprise communications services providers;
- text messaging providers;
- one-way VoIP service providers;
- broadband providers;
- non-facilities based providers; and
- machine-to-machine communications providers.
- and whether the FCC has statutory authority to require contribution from such providers.
- How contributions should be assessed, including comments on whether and how the Commission:
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- can revise and reform the current revenues-based system;
- can instead adopt and implement connections-based contribution mechanism;
- can instead assess contributions based on the use of telephone numbers; and or
- adopt a hybrid-approach utilizing any combination of three approaches.
- How the administration of the contribution mechanism can be improved, including whether the Commission should take steps to:
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- revise the reporting worksheet;
- limit or increase the frequency of adjustment to the USF contribution factor;
- implement a pay-and-dispute policy; and
- provide additional oversight and accountability for the fund.
- How contributors recover contributions from end users.
Comments are due 30 days after publication in the Federal Register; replies due 60 days after publication. A full copy of the FNPRM is available here.
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