Universal Service Administrative Company

The total projected collected interstate and international end-user revenue base to be used in determining the contribution factor for the Universal Service support mechanisms for the first quarter of 2020 is $11,129,976,956.

The Universal Service Administrative Company used airborne drones to measure mobile wireless coverage in Puerto Rico post-Hurricane Maria. USAC’s vendor conducted a total of 20 drone tests in Puerto Rico; one of which was overlapped by a drive test in order to compare relative performance. The remaining 19 drone tests were conducted in impassible areas. Within Puerto Rico, the test evidence suggests that drones are capable of quickly surveying smaller areas, but may not be as useful for surveying larger areas in a cost-effective manner at this time.

On June 18, 2018, the Universal Service Administrative Company (USAC) and the Federal Communications Commission deployed the National Verifier (NV) system, kicking off the initial Soft Launch phase in six states. Since then, USAC has launched in ten additional states/territories across two separate launches. States and territories in the June 2018 and October 2018 launches are in the Full Launch phase, meaning carriers are required to use the NV system. In addition, consumers have access to use the system in these states.

The Universal Service Administrative Company (USAC) submitted the federal Universal Service Support Mechanisms fund size and administrative cost projections for the second quarter of calendar year 2019 (2Q2019), in accordance with Federal Communications Commission rules. USAC projects a consolidated operating and capital budget of $59.90 million for 2Q2019. Direct operating and capital costs for all support mechanisms total $34.66 million and are listed for each mechanism in the chart provided below.

Effective immediately, as of May 2018, the Universal Service Administrative Company (USAC) will accept payments to and distribute funds from the US Treasury. This is not a change to USAC’s administration of the Universal Service Fund (USF).

After a comprehensive review of funding request forms (FCC Forms 462 and 466) received during the second filing window period for FY2016 (i.e., September 1 – November 30, 2016), USAC will begin issuing funding commitment letters (FCLs) on April 10, based on the total dollar value of all qualifying funding requests received during the September – November 2016 filing window period. The total dollar value of all qualifying funding requests received during this filing window period was $274,725,249. Because this amount exceeds the RHC Program funding available of $254,255,017 at the beginning of the September – November filing window period, funding requests submitted during the September – November filing window period will receive a pro-rated percentage of the qualifying funding requested. The pro-rata percentage for the FY2016 September – November filing window period is 92.5% (reduction of 7.5%) for the qualifying funding requests. The exact amount of funding each qualifying funding request will receive will be detailed in the FCLs.

John Windhausen, the Executive Director of the Schools, Healthcare and Libraries Broadband Coalition, said, “The SHLB Coalition appreciates the difficult position faced by USAC, the Federal Communications Commission (FCC) and applicants in the Rural Health Care (RHC) Program. For the first time, demand for RHC program funding in FY 2016 has exceeded the $400 Million cap, and as a result, several rural telehealth providers will suffer reductions in funding. Unfortunately, this will mean that many rural health centers will be forced to pay more to maintain their existing telemedicine connections, and some of these clinics may be forced off the network altogether, which jeopardizes the quality of health care delivered to rural America. This funding crisis points to the need for comprehensive reform of the RHC program, which the SHLB Coalition requested in its Petition for Rulemaking filed in December 2015. The RHC program is the only one of the four Universal Service Fund programs that has not been fully reformed, and we urge the FCC to move forward to upgrade this program as soon as possible.”