WPC 2?BJ$Courier3|w  #Xm2PG;4XP#Times New RomanCG TimesArial Bold P6G;PfX@Times New RomanCG Times#Xm2PG;4XP#2"qK ZCourierArial"i~'^09CSS999S]+9+/SSSSSSSSSS//]]]Ixnnxg]xx9?xgxx]xn]gxxxxg9/9MS9ISISI9SS//S/SSSS9?/SSxSSIP!PZ9+ZM999+999999S9S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""2"2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d""/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN\4  pG;V"G($,}hG PE37hP[A(",$L6hA2PG;hPW!B(#,8hB4  pG;hqWWN(((<<(5<5<5(<   ??       ?  ?          ?     ?   ?   ?            ?? ? ??  ? ?   ?            ?        ??  ?  ?    &  '  '        ?       ?            ??  ??  ? ? ?   ?    ?                        ?   ??   ?   ? ?ǀ   ?ǀ  ? ?À  ? ?À   ?À   ?À   ?         ?         ?  ?  π       ?   ?            ?  À ?        ? ? ?      ?    8?       ? ? ~  ?  ? ?  ? ?  ?    ?  ? ??  ?   ?   ? ??  ?   ?  ? ? ? ? ? ? ? ? ?  ? ?   ?   ?   ?  ?  ? ?? ? ? ??? ~?   ? ? ? ?? ? ??  ? ? ??  ?  ?  ?À? ? ?? ?? ?? ? ? ? ?? ?? ??? ? ?? ?? ? ? ?? ? ?? ??  ??  ???  ?  ?  ? ?? ??  ?  ?  >?  ?  ?? - ?: 9 4ǀ? ?4 4 4? 4 4 4 4 5? 5 4 ?4 ?4 5 5 5 ?1? ?1 ?1 ?1 ?0 1x 1 / /? ?/π / / / .? ??.? ?. <. - - - --,,?,,-?----?+?* ??* ?+,>,,,?,?,?,--.?.?.?.%?À%%%%%%?%%?%?%?%&&'''?'?'?''?'())))x)?)?)?))*+++ǀX? π? ? ??? ##?&#&#? %#0%#x?%#?x%#?|%#?%#?%#?%#?%#%#%#%# ?%# $# ?$#?$# $# ?$# $#$#$#$#$#$#$#$###??####?##?##?#$ ?#$'$?'$'*'*'+'++XC f   X &ODraft of 5/28/98& XX  ddZd  Figure 1  Figure 1 #` 2pPG;/'` # U 1  1 y!HHX@Uddfcclogo.wpgHHy$XX%%%%!$\!d ddh d  dB0#I2PG;uKP#News media information 202 / 4180500 ?FaxOnDemand 202 / 4182830 \EInternet: http://www.fcc.gov lftp.fcc.gov\!PUBLIC NOTICE#Xm2PG;4XP# ,%%ATT!!T%,  P*2$TT*XXTT!T%$X` hp x (#%'0*,.8135@8: ZXA yO-ԍ In a letter dated May 11, 1998, SLC projected that the funding demand for the schools and libraries  {O -program for the third quarter of 1998 would be $690 million.  See Letter from Ira Fishman, SLC, to Magalie Roman Salas, FCC, dated May 11, 1998.>$W4.4$ X-Dԃt(0.0) Zz  yO -ԍ SLC made the conservative assumption that interest income would be zero for the third quarter, to reflect  {O -the possibility that all funds would be disbursed during the third quarter.  See Schools and Libraries Corporation Fund Size Requirements for Third Quarter 1998, CC Docket Nos. 9645, 9721, May 1, 1998, at 3, n.5.$325.0q q L h  Rural Health Care .h$  24.3.h$W1.2.h$(0.5).h$t25.0q    h  DDZSubtotal$ 714.3$W5.6$(0.5)$350.0  a. Y  High Cost 0 Y$ XG -  414.10 Y$ XG -W 0.80 Y$(0.7)0 Y$ XG - 414.2#Xj\  P6G;ynXP#aq  Yh  Low Income  h$ X -  125.3 h$ X -W 0.4 h$ X - (1.0) h$ X - 124.7q   0  h  DDZSubtotalB $ 539.4B $W1.2B $(1.7)B $538.9       X - TOTAL $ X -  1,253.7$W6.8 $ X -(2.2) $888.9B  P P Based on information contained in the Universal Service Worksheets, FCC Form 457, USAC submitted on May 1, 1998, enduser telecommunications revenues for the 1997 calendar year. On May 14,  Xw-1998, USAC submitted revised enduser telecommunications revenues for the 1997 calendar year. w^8 yO-ԍ Letter from Ed English, USAC, to Magalie Roman Salas, FCC, dated May 14, 1998 (USAC May 14 letter). USAC revised the figures based on information contained in Universal Service Worksheets that were submitted after USAC submitted its May 1st filing. USAC reported in its May 1st filing that, because several carriers had not yet submitted their Universal Service Worksheet, approximately 18 percent of the enduser telecommunications revenues were based on estimates by USAC. According to USAC, the percent of industry  {O -revenues that continues to be based on estimates by USAC is 4.2 percent. Id.Ġ Funding bases for the third and fourth quarters are determined by subtracting the revenues reported for January through June 1997 (on the September Worksheet) from the 1997 calendar year revenues reported on the March Worksheet. The amounts are as follows: XPTotal Interstate, Intrastate, and International EndUser Telecommunications Revenues from July 1, 1997 December 31, 1997: $94.066 billion(# XPTotal Interstate and International EndUser Telecommunications Revenues from July 1, 1997 December 31, 1997: $34.719 billion. ƀ% " ,**XX "ԌTo account for uncollectible contributions, we decrease by one percent the revenue estimates listed above. It has come to our attention that several carriers subject to the universal service contribution obligation have  X-failed to meet this obligation.,Z^8 yOK-ԍ Letter from Lisa Rosenblum, USAC, to Magalie Roman Salas, FCC, dated March 18, 1998 (USAC March  {O-18 letter). See also Letter from Robert Haga, USAC, to Magalie Roman Salas, FCC, dated June 12, 1998 (USAC June 12 letter)., To maintain the integrity of the universal service support mechanisms, pending enforcement of this obligation, we determine that we should account for uncollectible contributions  X-at a rate of one percent. This is consistent with USAC's estimated rate of uncollectible contributions.N^8 {O? -ԍ See USAC June 12 letter.N Additionally, because each quarter is three months long, we estimate quarterly revenues by dividing by two the sixmonth revenue estimates.  XX xBased on the revised enduser telecommunications revenues submitted by USAC, SLC,  X1-and RHCC,G1| {O^-ԍ  See USAC May 14 letter.G a onepercent reduction in the revenue estimates to account for uncollectible contributions, and consistent with the revised collection amounts for the schools and libraries and rural health care support mechanisms adopted today, the approved contribution factors for the third quarter of 1998 are as follows:  X - XxContribution factor for the schools and libraries and rural health care support mechanisms:   Xy-xTotal Program Costs / Contribution Base (Interstate, International, and Intrastate) = (#(#X Xb-x$0.350 billion / ( $93.125 billion / 2) = 0.0075 XxContribution factor for the high cost and low income support mechanisms:  XxTotal Program Costs / Contribution Base (Interstate and International) =(#  X-x$0.539 billion / ($34.372 billion / 2) = 0.0314 xThese factors are the approved third quarter 1998 universal service contribution factors that USAC shall use to calculate third quarter universal service contributions. USAC will bill  X-and collect these contributions on a monthly basis.F yOR!-ԍ 47 C.F.R.  54.709(a)(4).F xFor further information, contact Lori Wright, Accounting Policy Division, Common Carrier Bureau, at (202) 4187400.  ԩ Action by the Acting Chief, Common Carrier Bureau