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À ?        ? ? ?      ?    8?       ? ? ~  ?  ? ?  ? ?  ?    ?  ? ??  ?   ?   ? ??  ?   ?  ? ? ? ? ? ? ? ? ?  ? ?   ?   ?   ?  ?  ? ?? ? ? ??? ~?   ? ? ? ?? ? ??  ? ? ??  ?  ?  ?À? ? ?? ?? ?? ? ? ? ?? ?? ??? ? ?? ?? ? ? ?? ? ?? ??  ??  ???  ?  ?  ? ?? ??  ?  ?  >?  ?  ?? - ?: 9 4ǀ? ?4 4 4? 4 4 4 4 5? 5 4 ?4 ?4 5 5 5 ?1? ?1 ?1 ?1 ?0 1x 1 / /? ?/π / / / .? ??.? ?. <. - - - --,,?,,-?----?+?* ??* ?+,>,,,?,?,?,--.?.?.?.%?À%%%%%%?%%?%?%?%&&'''?'?'?''?'())))x)?)?)?))*+++ǀX? π? ? ??? ##?&#&#? %#0%#x?%#?x%#?|%#?%#?%#?%#?%#%#%#%# ?%# $# ?$#?$# $# ?$# $#$#$#$#$#$#$#$###??####?##?##?#$ ?#$'$?'$'*'*'+'++XC f   X &draft of 8/14/98& %J  %J  XX  ddZd  Figure 1  Figure 1 #` 2pPG;9` # U 1  1 y!HHX@Uddfcclogo.wpgHHy$XX%%%%!$\!d dd(h d  dB0#I2PG;P#News media information 202 / 4180500 &FaxOnDemand 202 / 4182830 8EInternet: http://www.fcc.gov |lftp.fcc.gov\!PUBLIC NOTICE#Xm2PG;XP# ,%%ATT!!T%,  P*-$TT*XXTT!T%$X` hp x (#%'0*,.8135@8: zT%_ !h T > D {& Hz  \r   X-amounts for the schools and libraries support mechanism.N^ {Oy-ԍ Federal-State Joint Board on Universal Service, Fifth Order on Reconsideration and Fourth Report and  {OC-Order in CC Docket No. 96-45, CC Docket No. 9645, FCC 98-120 (rel. June 22, 1998) at paras. 20, 29 (Fifth  {O -Order on Reconsideration).N Specifically, the Commission directed USAC to collect only as much as required by demand, but in no event more than $325 million per quarter for the third and fourth quarters of 1998 and the first and second  X-quarters of 1999 to support the schools and libraries universal service support mechanism.@ {OZ-ԍ Id. at para. 20.@  X-The Commission further directed SLC to approve applications totalling no more than $1.925  X-billion for disbursement during 1998 and the first half of 1999.@ {O -ԍ Id. at para. 29.@ The Commission also directed USAC to collect for the rural health care support mechanism only as much as required by demand, but in no event more than $25 million per quarter for the third and  XH-fourth quarters of 1998.@H {O -ԍ  Id. at para. 21.@ x xBased on information contained in the Universal Service Worksheets, FCC Form 457, USAC submitted on July 31, 1998, enduser telecommunications revenue 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: XxTotal Interstate, Intrastate, and International EndUser Telecommunications Revenues from July 1, 1997 December 31, 1997: $94.482 billion  XxTotal Interstate and International EndUser Telecommunications Revenues from July 1,  X4-1997 December 31, 1997: $34.228 billion. (# To account for uncollectible contributions, we decrease by one percent the revenue estimates  X-listed above. yOD-ԍ It has come to our attention that several carriers subject to the universal service contribution obligation  {O -have failed to meet this obligation. See Letter from Lisa Rosenblum, USAC, to Magalie Roman Salas, FCC,  {O -dated March 18, 1998 (USAC March 18 letter). See also Letter from Robert Haga, USAC, to Magalie Roman  {O!-Salas, FCC, dated June 12, 1998 (USAC June 12 letter).  See also Conquest Operator Services Corp. Apparent  {Oj"-Liability for Forfeiture, Notice of Apparent Liability for Forfeiture, File No. ENF9806, NAL/Acct. No. 816EF0004 (rel. August 14, 1998); Operator Communications, Inc. Apparent Liability for Forfeiture, Notice of Apparent Liability for Forfeiture, File No. ENF9807, NAL/Acct. No. 816EF0005 (rel. August 14, 1998). To  yO$-maintain the integrity of the universal service support mechanisms, pending enforcement of this obligation, we  yO%-determine that we should account for uncollectible contributions at a rate of one percent. This is consistent with  {OT&-USAC's estimated rate of uncollectibles. See USAC June 12 letter.  In addition, we estimate quarterly revenues by dividing by two the sixmonth revenue estimates.   xTaking into account the one percent uncollectible factor, the proposed contribution factors for the fourth quarter of 1998 are as follows:"F,**XXQ "Ԍ X-ԙ XxContribution factor for the schools and libraries and rural health care support mechanisms:   X-  X-xTotal Program Costs / Contribution Base (Interstate, International, and Intrastate) = (#(#X X-x$0.350 billion / ( $93.537 billion / 2) = 0.0075 XxContribution factor for the high cost and low income support mechanisms:  XxTotal Program Costs / Contribution Base (Interstate and International) =(#  X1-x$0.539 billion / ($33.885 billion / 2) = 0.03 18 xThese factors are the proposed fourth quarter 1998 universal service contribution factors. If the Commission takes no action regarding these proposed factors within the 14day period following release of this Public Notice, the projections shall be deemed approved by the Commission and shall be used by USAC to calculate third quarter universal service  X -contributions.9   {O -ԍ In the Fifth Order on Reconsideration, the Commission revised section 54.709(a)(3) to eliminate the requirement that the proposed contribution factors be published in the Federal Register. The Commission concluded that, in the absence of further Commission action, the proposed contribution factors set forth in a Public Notice would be deemed approved 14 days after release of the Public Notice in which they are  {OB-announced. Fifth Order on Reconsideration at paras. 4950 and Appendix A.9 xFor further information, contact Lori Wright, Accounting Policy Division, Common Carrier Bureau, at (202) 4187400. H ԩ Action by the Chief, Accounting Policy Division