Universal Service/Low Income Support Database

We're pleased to announce our newest database, developed to serve our CLEC and wireless customers that are offering Lifeline service to low-income subscribers. Our End User Access Line (EUCL) Database gives the tariffed EUCL rate for each incumbent local exchange carrier (ILEC) in each state. The database shows the rate at which the Universal Service Fund (USF) Administrator will reimburse a service provider in exchange for that service provider reducing rates to low-income subscribers. Our customers use this data to submit accurate requests for reimbursement to the USF Administrator, since they must be reimbursed at the rate tariffed by the ULEC. Submitting inaccurate calculations of the amount due to the USF Administrator can lead to audits, which may potentially result in penalties.

Local exchange carriers have typically reduced their standard line charges by the amount available for reimbursement by the USF when serving eligible low-income subscribers. But a new trend among prepaid wireless service providers is to offer low-income subscribers free service, and to be compensated only at the amount available from the Universal Service Fund. The EUCL rate is currently capped at $6.50 per month.

The USF is funded through mandatory contributions from service providers and is currently set at 12.9% of revenue collected for interstate traffic. Generally, providers pass through these charges to customers as a fee on their phone bills. The total amount currently contributed to the USF each quarter is in excess of $18 billion. In addition to subsidizing low-income subscribers, the USF offers reimbursement to companies serving rural areas where the costs of providing service to small numbers of subscribers is very high. It also provides funds to subsidize Internet service in schools and libraries.

KFR's EUCL database includes supporting tariff pages and documentation to be used in the event of an audit by the USF Administrator.

Please call Kim Russo at 800-433-6181 x7103 or email krusso@telecomdb.com for more information.