The Front Lines - April 4, 2006

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The FRONT LINES

Sponsored by The Helein Law Group, P.C.

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Advancing The Cause of Competition in the Telecommunications Industry

NOTICE: SECOND QUARTER 2006 UNIVERSAL SERVICE FUND CONTRIBUTION FACTOR INCREASED TO 10.9%

The Wireline Competition Bureau of the FCC announced that the Universal Service Fund contribution factor for the Second Quarter of

2006 increased from the current 10.2% to 10.9%. The 10.9% contribution factor became effective April 1, 2006.

Contributors are reminded that they may not mark up federal universal service line-item amounts above the contribution factor. Thus, contributors may not, during the second quarter of 2006, recover from end users through a federal universal service line item an amount that exceeds the interstate (and international) telecommunications charges on a customer's bill times 10.9%.

REMINDER : FCC REGULATORY REPORTING DEADLINES

FCC FORM 499-Q - QUARTERLY TELECOMMUNICATIONS REPORTING WORKSHEET

Deadline: May 1, 2006

Providers of interstate and international telecommunications services ("Universal Service Fund contributors") are reminded that their FCC Form 499-Q is due no later than Monday, May 1, 2006.

The FCC requires all non- de minimis USF contributors to file Form

499-Q to report actual billed revenue and projected revenues. In the Form 499-Q due May 1st, contributors must report actual billed revenue for the 1st Quarter of 2006 and projected billed & collected revenue for the 3rd Quarter of 2006. The Universal Service Administrative Company mails forms and instructions to contributors who have reported in the past. If you have not reported in the past, but are required to do so, forms and instructions are available on the FCC's website -
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- or you may contact our firm and we'll e-mail them to you. Contact: snipped-for-privacy@thlglaw.com or 703-714-1300.

De Minimis carriers and service providers (i.e., those with $10,000 or less in annual USF contributions) are not required to file Form 499-Qs unless and until they reasonably project exceeding the de minimis threshold within a given year.

The Front Lines is a free publication of The Helein Law Group, P.C., providing clients and interested parties with valuable information, news, and updates regarding regulatory and legal developments primarily impacting companies engaged in the competitive telecommunications industry.

The Front Lines does not purport to offer legal advice nor does it establish a lawyer-client relationship with the reader. If you have questions about a particular article, general concerns, or wish to seek legal counsel regarding a specific regulatory or legal matter affecting your company, please contact our firm at 703-714-1313 or visit our website:

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The Helein Law Group, P.C.

8180 Greensboro Drive, Suite 700 McLean, Virginia 22102
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Jonathan Marashlian
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