Instructions For Fcc Form 499-Q - Telecommunications Reporting Worksheet

The Commission adopted two “safe harbor” methods for allocating revenue when telecommunications

and CPE/enhanced services are offered as a bundled package.

The first option is to report revenues

from bundled telecommunications and CPE/enhanced service offerings based on the unbundled service

offering prices, with no discount from the bundled offering being allocated to telecommunications.

Alternatively, contributors may elect to treat all bundled revenues as telecommunications revenues for

purposes of determining their universal service obligations. Filers may choose to use allocation methods

other than the two described above. Filers should realize, however, that any other allocation methods

may not be considered reasonable, and will be evaluated on a case-by-case basis in an audit or

enforcement context. Prepaid calling card providers may avail themselves of the bundled service safe

harbors for separating revenue between telecommunications and information services.

Line 118 – Gross billed revenues from all sources. This line should equal the sum of revenues by type of

service reported on Lines 115 through 117.

As noted above, for further detail on the types of revenues that should be reported on Lines 115 through

117, filers may wish to consult the Instructions for the FCC Form 499-A, available at the Commission's web

site ( ).

Projected gross billed end-user interstate and international revenues

The projection quarter is the calendar quarter that starts two months after the filing date and finishes five

months after the filing date. Line 119 should contain projected gross-billed end-user interstate and

international revenues, including any pass-through charges for federal universal service contributions.

These amounts should be the amounts that the filer anticipates reporting on Line 116, column (b) and

column (c), in the FCC Form 499-Q filing due six months after the present filing date. In order to estimate

these amounts, the filer could review the amounts they are reporting on Line 116 in the instant filing and

amounts reported in recent filings. In addition, filers could take into account general business conditions,

new contracts covering the projection period, pricing trends, marketing programs, expansion plans, and

other relevant information. Filers must develop good faith projections based on company procedures and

policies. If the filer anticipates that revenues are as likely to increase as decrease, then it may copy the

historic values from Line 116 to use as its projections for Line 119 or it could develop projections by

trending historic values from previous quarterly filings. Filers need not make projections for Line 119

column (a).

Projected collected end-user interstate and international revenues

Line 120 should show the interstate and international revenues that the filer anticipates collecting from

customers during the projection quarter. For this purpose “collected end-user” revenues refers to gross-

billed end-user interstate and international telecommunications revenues, including any pass-through

charges for federal universal service contributions, less estimated uncollectibles.

We define

uncollectibles as the percentage of interstate and international telecommunications revenues that the

contributor anticipates will not be collected from end-user customers. This percentage should be

calculated in accordance with Generally Accepted Accounting Principles.

Thus, uncollectibles should

CPE Bundling Order, 16 FCC Rcd 7418 at 7447-48, paras. 50-52.

See Regulation of Prepaid Calling Card Services, WC Docket No. 05-68, Declaratory Ruling, Report and Order,

21 FCC Rcd 7290, 7298. para. 22 (2006), vacated in part, Qwest Servs. Corp. v. FCC, 509 F.3d 531 (D.C. Cir.

2007).

Wireless Safe Harbor Order, 13 FCC Rcd at 21258-60, paras. 11-15; 2002 Second Contribution Methodology

Order and FNPRM, 17 FCC Rcd at 24970, para. 32.

General Accepted Accounting Principles (GAAP) encompasses the conventions, rules, and procedures necessary

to define accepted practice in the preparation of financial statements in the United States. The Financial Accounting

(continued . . .)

Instructions For Fcc Form 499-Q - Telecommunications Reporting Worksheet - 2017 Page 18

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