Sec.  54.706   Contributions.

   Link to an amendment published at  71 FR 43673 , Aug. 2, 2006.

   (a) Entities that provide interstate telecommunications to the public, or to
   such classes of users as to be effectively available to the public, for a
   fee will be considered telecommunications carriers providing interstate
   telecommunications services and must contribute to the universal service
   support mechanisms. Certain other providers of interstate
   telecommunications, such as payphone providers that are aggregators,
   providers of interstate telecommunications for a fee on a non-common carrier
   basis, and interconnected VoIP providers, also must contribute to the
   universal service support mechanisms. Interstate telecommunications include,
   but are not limited to:

   (1) Cellular telephone and paging services;

   (2) Mobile radio services;

   (3) Operator services;

   (4) Personal communications services (PCS);

   (5) Access to interexchange service;

   (6) Special access service;

   (7) WATS;

   (8) Toll-free service;

   (9) 900 service;

   (10) Message telephone service (MTS);

   (11) Private line service;

   (12) Telex;

   (13) Telegraph;

   (14) Video services;

   (15) Satellite service;

   (16) Resale of interstate services;

   (17) Payphone services; and

   (18) Interconnected VoIP services.

   (b) Except as provided in paragraph (c) of this section, every entity
   required to contribute to the federal universal service support mechanisms
   under paragraph (a) of this section shall contribute on the basis of its
   projected collected interstate and international end-user telecommunications
   revenues, net of projected contributions.

   (c) Any entity required to contribute to the federal universal service
   support mechanisms whose projected collected interstate end-user
   telecommunications revenues comprise less than 12 percent of its combined
   projected collected interstate and international end-user telecommunications
   revenues shall contribute based only on such entity's projected collected
   interstate end-user telecommunications revenues, net of projected
   contributions. For purposes of this paragraph, an “entity” shall refer to
   the entity that is subject to the universal service reporting requirements
   in  Sec. 54.711 and shall include all of that entity's affiliated providers of
   interstate and international telecommunications and telecommunications
   services.

   (d) Entities providing open video systems (OVS), cable leased access, or
   direct broadcast satellite (DBS) services are not required to contribute on
   the basis of revenues derived from those services. The following entities
   will not be required to contribute to universal service: non-profit health
   care providers; broadcasters; systems integrators that derive less than five
   percent of their systems integration revenues from the resale of
   telecommunications.

   [ 63 FR 70575 , Dec. 21, 1998, as amended at  64 FR 60358 , Nov. 5, 1999;  67 FR 11260 , Mar. 13, 2002;  67 FR 79532 , Dec. 30, 2002;  71 FR 38796 , July 10,
   2006]

   Effective Date Notes:   1. At  71 FR 38796 , July 10, 2006,  Sec. 54.706 was
   amended by revising paragraphs (a) introductory text, (a)(16), (a)(17), by
   adding paragraph (a)(18), and by revising paragraphs (b) and (c). This text
   contains information collection and recordkeeping requirements and will not
   become effective until approval has been given by the Office of Management
   and Budget.

   2. At  71 FR 43673 , Aug. 2, 2006,  Sec. 54.706 was amended by adding paragraph
   (a)(19), effective Oct. 31, 2006.