The Universal Services Fund FAQ

The Universal Services Fund (USF) is a government administered fund to support the provision of telecommunications services in rural and high cost areas, low income consumers and to schools, libraries and health care facilities nationwide. All telecommunications providers contribute to the USF on an equal basis.

What Governmental agency is responsible for USF?

The United States Congress authorized the Federal Communications Commission(FCC)  to implement the Universal Service Fund. The USF is mandated by Section 254 of the Telecommunications Act of 1996.The USF is administered by Universal Service Administrative Company (USAC).

Why is GAN Conferencing collecting these fees on audio calls?

A recent decision by the FCC dictates that all telecommunication service providers track all telecommunications revenue. To remain in compliance and in good standing, GAN Conferencing must file forms with USAC and pay the fees assessed by the FCC on the telecommunications revenue.

Will all audio conferencing providers charge these fees on audio conferencing calls?

Yes. The June 30, 2008 FCC order clearly states that all providers of telecommunications which includes conferencing must comply with the order. The FCC has directed USAC to ensure that all conferencing service providers abide by the order.

What states and countries are impacted by these fees?

The USF applies to services billed to US customers, including both interstate and international services. If a caller on your conference is within the United States, then the fee will be assessed. If all callers are located Internationally then there will be no fee.

When will the fees be collected?

The June 30 and July 17, 2008 FCC orders require USAC and other fund administrators to collect the fee from GAN Conferencing, and all teleconferencing service providers beginning on October 1, 2008. The charge will appear on all invoices dated October 1, 2008and thereafter.

Are all of my conferencing services subject to USF fees?

No. Web conferencing services are not subject to USF fees. Only audioconferencing services are subject to USF fees.

How much are these fees imposed by USAC?

The USF fee is set by the FCC quarterly and collected by USAC. The fee as of August 2008 is 11.4% of end user interstate and international telecommunications revenues.

Are non-profit groups exempt from these fees?

No. The FCC regulations state that these fees apply to all end users including not-for-profit entities. If you feel that your organization should be exempt, contact the FCC as below. If exempt status is verified, please provide supporting documentation to GAN Conferencing.

Where do I find additional information about the USF?

Additional information may be located at: http://www.fcc.gov/wcb/tapd/universal_service

You may also contact the FFC at:

Federal Communications Commission
445 12th Street SW
Washington, DC 20554
www.fcc.gov
888-225-5322