Sec.  54.706   Contributions.

   (a) Entities that provide interstate telecommunications to the public, or to
   such classes of users as to be effectively available to the public, for a
   fee will be considered telecommunications carriers providing interstate
   telecommunications services and must contribute to the universal service
   support programs. Interstate telecommunications include, but are not limited
   to:

   (1) Cellular telephone and paging services;

   (2) Mobile radio services;

   (3) Operator services;

   (4) Personal communications services (PCS);

   (5) Access to interexchange service;

   (6) Special access service;

   (7) WATS;

   (8) Toll-free service;

   (9) 900 service;

   (10) Message telephone service (MTS);

   (11) Private line service;

   (12) Telex;

   (13) Telegraph;

   (14) Video services;

   (15) Satellite service;

   (16) Resale of interstate services; and

   (17) Payphone services.

   (b) Prior to April 1, 2003, except as provided in paragraph (c) of this
   section, every telecommunications carrier that provides interstate
   telecommunications services, every provider of interstate telecommunications
   that offers telecommunications for a fee on a non-common carrier basis, and
   every payphone provider that is an aggregator shall contribute to the
   federal universal service support mechanisms on the basis of its interstate
   and international end-user telecommunications revenues, net of prior period
   actual contributions. Beginning April 1, 2003, except as provided in
   paragraph (c) of this section, every such provider shall contribute on the
   basis of its projected collected interstate and international end-user
   telecommunications revenues, net of projected contributions.

   (c) Prior to April 1, 2003, any entity required to contribute to the federal
   universal service support mechanisms whose interstate end-user
   telecommunications revenues comprise less than 12 percent of its combined
   interstate and international end-user telecommunications revenues shall
   contribute to the federal universal service support mechanisms for high cost
   areas, low-income consumers, schools and libraries, and rural health care
   providers based only on such entity's interstate end-user telecommunications
   revenues, net of prior period actual contributions. Beginning April 1, 2003,
   any entity required to contribute to the federal universal service support
   mechanisms whose projected collected interstate end-user telecommunications
   revenues comprise less than 12 percent of its combined projected collected
   interstate and international end-user telecommunications revenues shall
   contribute based only on such entity's projected collected interstate
   end-user telecommunications revenues, net of projected contributions. For
   purposes of this paragraph, an “entity” shall refer to the entity that is
   subject to the universal service reporting requirements in  Sec. 54.711 and shall
   include all of that entity's affiliated providers of telecommunications
   services.

   (d) Entities providing open video systems (OVS), cable leased access, or
   direct broadcast satellite (DBS) services are not required to contribute on
   the basis of revenues derived from those services. The following entities
   will not be required to contribute to universal service: non-profit health
   care providers; broadcasters; systems integrators that derive less than five
   percent of their systems integration revenues from the resale of
   telecommunications.

   [ 63 FR 70575 , Dec. 21, 1998, as amended at  64 FR 60358 , Nov. 5, 1999;  67 FR 11260 , Mar. 13, 2002;  67 FR 79532 , Dec. 30, 2002]