How does the USF contribution system work?
USAC collects quarterly interstate and international revenue information from providers on the Quarterly Telecommunications Reporting Worksheet (Form 499-Q) four times each year and submits aggregate information on a quarterly basis to the FCC. USAC uses this information to calculate the expected contribution factor. The FCC reviews the data and establishes the contribution factor for the upcoming quarter. Using this information, providers calculate the amounts they will owe for USF. Providers generally build this factor into their billing systems if they choose to recoup this amount from their customers. At the beginning of the quarter to which the contribution factor applies, USAC bills all contributors for the amounts due based on the contribution factor. These invoices will change on a quarterly basis to reflect changes to the contribution factor, and revenues reported by the carrier. The billed contributions are due from the providers one month after they are billed. This allows U
