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 NEWS  Federal  Communications  Commission  445  12  th  Street,  S.  W.  Washington,  D.  C.  20554  This  is  an  unofficial  announcement  of  Commission  action.  Release  of  the  full  text  of  a  Commission  order  constitutes  official  action.  See  MCI  v.  FCC.  515  F  2d  385  (D.  C.  Circ  1974).  News  Media  Information  202  /  418-  0500  Internet:  http://  www.  fcc.  gov  TTY:  1-  888-  835-  5322 
 FOR  IMMEDIATE  RELEASE:  NEWS  MEDIA  CONTACT:  June  21,  2006  Mark  Wigfield,  202-  418-  0253 
 Email:  mark.  wigfield@  fcc.  gov 


 FCC  UPDATES  APPROACH  FOR  ASSESSING  CONTRIBUTIONS  TO  THE  FEDERAL  UNIVERSAL  SERVICE  FUND 
 Interim  Modifications  Reflect  Changes  in  Technology,  Competitive  Environment 
 Washington,  D.  C.  –  Preserving  and  advancing  universal  service  remains  one  of  the  core  principles  set  forth  by  Congress  in  section  254  of  the  Telecommunications  Act  of  1996.  Today, 


 the  Federal  Communications  Commission  (Commission)  adopts  two  modifications  to  its  approach  for  assessing  contributions. 


 First,  the  Commission  raises  the  existing  wireless  “safe  harbor”  percentage  used  to  estimate  interstate  revenue  from  28.5  percent  to  37.1  percent  of  total  end-  user 
 telecommunications  revenue  to  better  reflect  growing  demand  for  wireless  services.  This  interim  wireless  safe  harbor  was  last  updated  in  2002.  Wireless  carriers  continue  to  retain  the  option  to 
 base  contributions  on  their  actual  revenues  or  on  traffic  studies  that  estimate  their  actual  interstate  revenues. 


 Second,  the  Commission  expands  the  base  of  USF  contributions  by  extending  universal  service  contribution  obligations  to  providers  of  interconnected  voice  over  Internet  Protocol,  or 
 VoIP,  service.  For  interconnected  VoIP  providers,  the  Commission  establishes  a  safe  harbor  percentage  of  interstate  revenue  at  64.9  percent  of  total  VoIP  service  revenue.  Interconnected 
 VoIP  providers  also  may  calculate  their  interstate  revenues  based  on  their  actual  revenues  or  by  using  traffic  studies. 


 The  Commission  also  adopts  a  Notice  of  Proposed  Rulemaking  seeking  comment  on  interim  contribution  obligations  imposed  in  this  Order. 
 The  Commission’s  measured  interim  steps  will  stabilize  the  contribution  base  for  the  Fund  in  the  near-  term  and  minimize  the  impact  of  any  changes  on  consumers,  Fund  contributors, 
 and  Fund  administration,  while  the  Commission  considers  more  fundamental  reform  of  the  contribution  methodology. 


 Action  by  the  Commission,  June  21,  2006,  by  Report  and  Order  and  Notice  of  Proposed  Rulemaking,  (FCC  06-  94).  Chairman  Martin,  Commissioners  Tate  and  McDowell,  with 
 Commissioners  Copps  and  Adelstein  approving  and  concurring  in  part.  Separate  statements  issued  by  Chairman  Martin,  Commissioners  Copps,  Adelstein,  Tate,  and  McDowell. 
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 Docket  Nos.  06-  122,  04-  36,  96-  45,  98-  171,  90-  571,  92-  237,  99-  200,  95-  116,  98-  170. 
 Wireline  Competition  Bureau  Staff  Contact:  Amy  Bender  at  202-  418-  1469,  amy.  bender@  fcc.  gov. 


 -FCC- 
 News  about  the  Federal  Communications  Commission  can  also  be  found 
 on  the  Commission’s  web  site  www.  fcc.  gov. 
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