FCC Form 499-A Compliance
Ensure Compliance. Avoid Penalties. Protect Your Business.
Telecommunications providers of all sizes are required to contribute to several federal programs – most notably the federal Universal Service Fund (USF), which ensures that essential communications services remain accessible across rural communities, schools, libraries, and healthcare facilities. Many states have their own version of the USF which helps keep local service rates affordable for all residents of the state, subsidizes specialized telecommunications programs, and provides discounts to low-income families
What Is an FCC Form 499-A?
The FCC Form 499-A, also known as the Telecommunications Reporting Worksheet, is the initial form a telecom provider submits to the Universal Service Administrative Company (USAC) to register as a contributor to the USF. It’s used to register for a 499 ID and report basic information about the company.
After the initial registration, a telecom provider must file the FCC Form 499-A annually by April 1st, reporting revenues for the previous calendar year. This information is then used to determine how much the provider must contribute to the USF. Failing to file, filing late, or making errors on this form can result in significant monetary penalties (forfeitures), including fines, interest, and administrative costs. Failure to file accurate information can lead to further consequences, including USAC audits or FCC investigations.
Who Is Required to File a Form 499-A?
If you offer telecommunications services, including interstate or international wireline or mobile services, you are likely required to file.
This includes:
- Common and private carriers
- Wireless and satellite service providers
- VoIP providers
- Resellers
- Toll-free and 900 service providers
Exceptions:
You may be exempt if:
- You are a government entity or broadcaster
- You are a system integrator deriving less than 5% of revenue from telecom resale
However, assumptions can be costly. Misclassification or failing to file when required can result in very large penalties. Always consult an experienced telecom attorney before claiming an exemption.
How Revenue Is Calculated
Revenue reporting for USF begins with quarterly projections via FCC Form 499-Q, but the Form 499-A provides the final, audited annual revenue figures used to assess contributions.
The form contains complex allocation rules and calculations to determine your liability across several federal programs. It also requires a certification that all submitted information is accurate, as mistakes can trigger audits and steep fines.