wood_usf_cc.doc

March 2, 2000

Ross Wood
Voice Technology Corp.
dba Link Long Distance
5120 Overland Road, Suite C-103
Boise, ID 83705

Dear Mr. Wood:

On February 22, 2000, in conversations with the Administrator of the Idaho Universal Service Fund (USF), Alyson Anderson, you indicated that your company, Voice Technology, was collecting the USF surcharge on its customers and that the underlying carriers were requiring Voice Technology to pay the USF surcharge to the underlying carrier. You requested information on getting an exemption from reporting and remitting the surcharge to the USF Administrator.

All telephone corporations providing MTS/WATS service are required to collect the USF local exchange surcharge from end-users and remit the local exchange surcharge revenues to the USF Administrator, Alyson Anderson, on a monthly basis unless such telephone corporation is exempted from remitting the surcharge. Idaho Code § 62-610; IDAPA 31.46.01.105. This requirement applies to resellers of MTS/WATS service, too. An exemption to remitting the surcharge to the USF Administrator is only available to certain MTS/WATS resellers. This exemption does not exempt anyone from collecting the surcharge from the end-user.

If your underlying carrier is remitting the USF surcharge to the USF Administrator you may be eligible for an exemption. I understand that you have some concerns about your contractual relationship with your underlying carrier. The Commission has no authority to interfere with that relationship. That is a contractual matter between your company and the underlying carrier.

Only those resellers of MTS/WATS services who provide no other telecommunications service are eligible to apply for an exemption. IDAPA 31.46.01.402. If you would like an exemption from remitting and reporting to the USF Administrator, you must apply for an exemption as outlined in Commission Rule 402.02. The Application must be in writing and it must include the following:

1. A statement that the MTS/WATS company (your company) is seeking a resellers exemption

2. Name the resellers underlying MTS/WATS carrier

3. Certify that the named underlying carrier carries all of the resellers traffic in Idaho, and

4. A statement that the reseller will notify the Commission whenever one of its underlying carriers changes.

The Application must also be accompanied by a letter from the underlying carrier stating the following:

1. That the reselling carrier requesting the exemption is a customer of the underlying carrier, and

2. That the underlying carrier is remitting the surcharge to the USF for all minutes sold to the reselling carrier.

The Application should be directed to the Commission Secretary. The Commission will notify you if the exemption is granted. However, unless a reseller applies for and receives an exemption, it must continue to remit all surcharge revenues to the USF Administrator and comply with all reporting requirements.

If you have any questions, please feel free to contact me. I have enclosed a copy of the Commission rules addressing USF.

Sincerely,

Cheri C. Copsey
Deputy Attorney General

Enclosure: IUSF Reporting Form

cc: Alyson Anderson, USF Administrator

L:wood_cc

Idaho Universal Service Fund Form 1.0 Due Date: First of the Month Revised 10/99 Company Name: Reporting Period: To Local Exchange Services # of Lines Surcharge 1. Residence Lines x .12 2. Pro-Rated Charges 3. Business Lines x .24 4. Pro-Rated Charges 5. Total Local Surcharge Revenues (Sum Lines 1 through 4) MTS/WATS Type Toll Services 6. Intrastate Billed MTS & WATS Minutes 7. Intrastate Billed MTS & WATS Revenues 8. Surcharge Rate $.0035 9. Total MTS/WATS Surcharge Revenues (Line 6 X Line 8) Surcharge 10. Total Surcharge Revenues (Sum Lines 5 and 9) Prepared By: Phone: Approved By: Phone: Make Checks Payable To: Questions? Call Alyson Anderson, Idaho Universal Service Fund Administrator 3785 Williamsburg Way Phone: [phone] Fax: [phone] Boise, ID 83706-5605

Ross Wood
March 2, 2000
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