IUSF.pdf

IDAHO UNIVERSAL SERVICE FUND
(IUSF)
Description

The Idaho Universal Service Fund was established in 1988 to provide support to
companies providing service in high cost areas so they could keep their rates affordable.
This support is provided to companies that, when setting their local rates at 125% of
statewide average and their access rates at 100% of statewide average, cannot earn their
revenue requirements. The Commission reviews applications and supporting documents.
Where justified, the Commission awards funds from the IUSF of between 75% and 100%
of the revenue deficits demonstrated. (Note: This is not the same as the urban high cost
fund prescribed by the FCC as a result of the Telecommunications Act of 1996.)

Funding

The IUSF is funded by a statewide surcharge on local exchange service provided
by local exchange companies, mutual nonprofit and cooperative telephone corporations
(but not data and mobile services) and MTS and WATS type services. Surcharges may
be explicitly added to the customers' bills in addition to charges that would otherwise be
collected or they may be implicitly included in customers' bills (and remitted by the
telephone corporation) without increasing customers' bills. Surcharge rates are set by the
Commission to fund the distributions required by recipient companies and administrative
expenses. These rates are reviewed annually and revised, when necessary, to become
effective October 1 of the year.

Monthly and Annual Reporting and Remitting

Local exchange carriers shall remit surcharges on a monthly basis unless
arrangements are made with the Fund Administrator to remit less frequently. MTS and
WATS surcharges may be remitted at the cents-per-minute rate established by the
Commission or at a percentage-of-Idaho-revenue basis that yields an amount equal to the
cents-per-minute rate. If an MTS/WATS company chooses to remit on a percentage-of-
revenue basis, it must advise the Administrator in advance of its intention and it must
provide its calculations to show that the intended percentage surcharge will yield
equivalent funds. Idaho Law (§ 62-610) requires MTS/WATS providers to "remit the
revenues derived from such a surcharge to the fund administrator" and these funds must
be remitted on a monthly basis unless arrangements are made with the Fund
Administrator to remit less frequently.

On the first day of each month, local exchange companies must report the
number of business and residential lines in service on the first day of the preceding month
and remit the surcharges for that month. MTS/WATS companies must report, on or
before the first day of the month, the number of Idaho toll minutes billed to customers in
the last complete monthly billing and the revenue associated with those toll minutes.
MTS/WATS companies shall remit the surcharges for those minutes or the percentage of
revenue each month. Surcharges shall be remitted without regard to whether the
company has separately imposed the surcharge.

On or before June 1 of each year, all telephone corporations providing local exchange
or long distance service shall report to the Administrator the annual information required
by IDAPA 31.46.01 Rules 203 and 204. This report is required whether or not the
company submitted monthly reports and payments.

Exemptions

MTS/WATS companies who are exclusively resellers of MTS/WATS services
provided by another company may be exempted from reporting and remitting IUSF
funds, if they can show that the company providing the services is already remitting the
prescribed surcharge.

This exemption is not automatic. Resellers must request the exemption in
writing, naming (all of) their underlying carrier(s) and certifying that these carriers carry
ALL of the reseller's traffic in Idaho. This request must be accompanied by a letter from
the underlying carrier(s) certifying that it is remitting the surcharge to the USF for all
minutes sold to the reseller. The reseller is obligated to notify the Commission whenever
one of its underlying carriers changes or whenever its resale status changes. (See IDAPA
31.46.01 Rule 402.)

Upon receipt of the request and the underlying carrier(s) verification, the
Administrator or the Commission Staff will grant an exemption from reporting and
remitting surcharge funds.

Note that exemption from reporting and remitting surcharges should preclude the
resellers from billing a surcharge to the customers. This rule does NOT supercede Idaho
Code. All surcharges that have been collected must be remitted.

Administrator

The Commission has appointed Ms. Alyson Anderson to administer this fund. Questions,
payments and exemption applications should be sent to her at:

Alyson Anderson
1964 North 300 East
Centerville, UT 94014-1085
Phone: [phone]
Fax: [phone]
email: [e-mail]

Links:
Idaho Code § 62-610
Rules - IDAPA 31.46.01
Monthly Report
Monthly Report Instructions
Annual Report – Page 1 – Local Service
Annual Report – Page 2 - Local Service
Annual Report – Page 3 - Access
Annual Report – Page 4 – Toll

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