April 1st is, as Mark Twain described, “the day upon which we are reminded what we are on the other three hundred and sixty-four.” More specifically, April 1, 2011 is an important date for internet service providers who provide voice services, as well as for telecommunications carriers. This is the deadline for filing this year’s Form 499-A with the Federal Communications Commission, and devoting due attention now to the Form 499-A requirements can help prevent “foolish” problems down the road. 

With limited exceptions, intrastate, interstate and international providers of telecommunications services and interconnected VoIP services in the United States must file FCC Form 499-A within one week of offering service to the public and by April 1 of each year. Form 499-A registers the provider with the FCC and the Universal Service Administrative Company. The Form 499-A filing also paves the way for the provider, where required, to file quarterly and annual regulatory filings for its contributions to the Universal Service Fund (“USF”) and other federal programs. The amount of a service provider’s contribution is based on a government-established percentage of a “contribution base,” which is usually based on the provider’s report in Form 499-A of revenues from interstate and international services. Form 499-A also serves to designate the provider’s agent for service of process in the District of Columbia. 

Interconnected VoIP providers take note: due to the difficulties in separating interstate revenues from intrastate revenues for interconnected VoIP service, the FCC has established a “safe harbor” percentage for interconnected VoIP providers, who may choose to report their interstate revenues as 64.9 percent of their total VoIP service revenue.  Interconnected VoIP providers also may calculate their interstate revenues based on their actual revenues or by using traffic studies. Interconnected VoIP providers are required to make USF contributions unless such contributions would be de minimis under FCC rules. Contributions are considered de minimis if the amount owed for a particular year would be less than $10,000 based on the FCC’s formula, which takes into account revenues from interstate traffic. Nevertheless, even providers that qualify for the de minimis exception must file FCC Form 499-A annually and must retain documentation of their contribution base revenues for three years. There is no filing fee for the form (contributions are billed separately during the year), but failure to file the form may lead to FCC enforcement action. Late, inaccurate, or untruthful filings may result in actions to recover costs or other penalties. 

Ben Franklin once said that “you may delay, but time will not” – so it is with the Form 499-A deadline. So, procrastinators who have not yet tackled their form have until April 1, 2011 to determine whether the FCC’s rules require filing of Form 499-A, and if no exemption applies, to gather the required revenue data and other information to complete the form on a timely basis. Service providers will also need to keep detailed records and to determine whether their service triggers requirements to make other common filings with the FCC. For those who are required to File Form 499-A, and have not already done so, don’t forget Henry Longfellow’s words to the wise: “time is fleeting.”