FCC Asks USAC for New Lifeline Reimbursement Process

The Federal Communications Commission has instructed the Universal Service Administrative Company (USAC) to develop a proposal for disbursing Universal Service Fund Lifeline support to eligible telecommunications carriers (ETCs) based upon actual claims for reimbursement, instead of ETCs’ projected claims for support.

Payment based on actual claims could replace the current administrative process, under which Lifeline support is paid each month based on a projection calculated by USAC that reflects the ETC's disbursements for the past 13 months plus a projected growth factor and a “true-up” once USAC receives an ETC's actual support claim on the FCC Lifeline and Link Up Worksheet (FCC Form 497).

Specifically, in order to promote greater accuracy in Lifeline payment processing, the FCC directs USAC to work with the Commission in developing an administrative process for disbursing Lifeline support to ETCs based on verified claims for reimbursement. For this purpose, please provide a draft of USAC’s proposed process, including proposals for transition and outreach to affected program participants, to the Office of Managing Director within the next ninety (90) days for review. Please also include an estimate of the administrative costs associated with USAC’s proposed process and an estimate of any long term savings resulting from disbursement of Lifeline support based upon actual reimbursement claims. To facilitate a smooth transition to a payment process based on actual disbursements, the Wireline Competition Bureau (WCB) will seek public comment on USAC’s proposed process. After reviewing comments, the FCC will determine what further steps are needed to adopt a new process.