FCC Form 499-A Registration
Virtually all telecommunications
providers, including long distance resellers, prepaid card providers, wireless providers, Mobile Virtual Network Operators
(MVNOs), and now interconnected VoIP providers, seeking to provide service in the U.S. must first register to do so with the FCC. Registration
is accomplished by filing with the Universal Service Administrative Company (USAC) a signed copy of selected portions of the
FCC Form 499-A.
The FCC Form 499-A Registration
is particularly important. One reason is that it automatically ties a provider into the FCC’s Universal Service Fund
(USF) contribution system, identifying a company as a payer under the program. Another
is that registering companies are added to the FCC’s online, searchable database of registered companies. Under the FCC’s rules, underlying facilities-based carriers are only allowed to contract with providers
on the FCC registration list. Thus, failing to register could prevent a provider
from being able to enter agreements with underlying facilities-based carriers.
FCC Forms 499-A and 499-Q—Revenue
Reporting
Once registered, providers typically
must file quarterly FCC Forms 499-Q and an annual FCC Form 499-A to report revenue on which the provider will be assessed
USF contributions. Providers are then billed based upon projections contained
on the FCC Forms 499-Q with payment required on a monthly basis. The revenue
reported on the FCC Form 499-A is also used to compute assessments for other programs, including the North American Numbering
Plan, Local Number Portability and Telecommunications Relay Services programs.
The USF contribution factor,
which changes quarterly, has in recent years run at 9 percent to 12 percent of a provider’s combined interstate and
international revenues. Given the magnitude of the contribution factor, it is
imperative that providers subject to USF assessments give careful consideration to the methodology they use to complete FCC
Forms 499-A and 499-Q, including potential strategies to minimize or even eliminate contribution liability. The Law Offices of Thomas K. Crowe, P.C. has been extensively involved with the evolution of the USF since
it was initially established as a result of the Telecommunications Act of 1996. Our
attorneys have assisted large numbers of diverse service providers in strategically completing the required forms and have
significant experience in utilizing program exemptions, reduction methodologies and exemption certificates to help ensure
that providers contribute no more than required amounts.
D.C. Agent
Among other things, the FCC Form
499-A Registration requires a new registrant to list an agent for service of process that is physically located in the District of Columbia. We typically serve as our clients’ agent for service in the District of Columbia, helping to ensure that official
FCC notices receive proper legal attention as necessary.
Penalties for Failure
to File or Contribute
Failure to register, file required
499 forms by applicable deadlines, or make required contributions violates FCC regulations and is subject to FCC forfeiture
penalties. In 2005, the FCC imposed a forfeiture of $100,000 against a provider
for failing to file an FCC Form 499-A Registration when required by FCC regulations.
The FCC has also imposed forfeitures of $50,000 for each failure to file an FCC Form 499-A or 499-Q. In addition, the agency regularly imposes forfeitures of $20,000 per month for failure to contribute to
USF ($10,000 for partial payments) plus an upward adjustment of one-half of the total unpaid contribution amount. That penalty is in addition to the total back payment owed for USF.
See http://www.tkcrowe.com/fcc_usf_fines.html for more information and specific enforcement actions.
Our Firm/Fees
Fees: In many cases, we offer the above services and filings at competitive
flat fees, including a reduced rate for electronic filing. Specifically, in uncomplicated
circumstances where exemption or reduction strategies do not require detailed consideration, we offer fixed fees for the following:
· FCC Form 499-A Registration.
· Quarterly FCC Forms 499-Q.
· Annual FCC Form 499-A.
· FCC Registered Agent.
Experience: Our Firm is AV rated by the “Martindale-Hubbell
Bar Register of Preeminent Lawyers” and its principal attorney has over 24 years of experience in communications practice.
Location: Our location in Washington, D.C.,
near the FCC and USAC, facilitates our substantial practice before these regulators.
Please contact us if you are
interested in assistance with any of the foregoing or if you would like more information about our Firm.