FCC Reverses USAC Audit Decision

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The FCC has ordered the Universal Service Administrative Company (USAC) to review a portion of a 2009 audit decision regarding the 2005, 2006, and 2007 FCC Forms 499-A submitted by Texas competitive local exchange carrier (CLEC) Grande Communications Networks, LLC and its subsidiaries (Grande).  USAC had found that Grande failed to properly allocate a portion of its revenues to the interstate jurisdiction for universal service fund (USF) contribution purposes.  However, in light of the FCC’s recent RICA/Blackfoot Order, which clarified that that CLECs are not obligated to allocate to the interstate jurisdiction a portion of their fixed local service end-user revenues for USF contribution purposes, the FCC has directed USAC to review its Grande audit decision  and issue refunds as appropriate.

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