At-A-Glance: FCC Exemptions for Reporting Wholesale (Carrier’s Carrier) Revenue on Form 499-A


Under the rules governing the Federal Universal Service Fund (“FUSF”), all telecommunications service providers must determine what revenue is subject to direct FUSF contribution, and what revenue can be considered wholesale and exempt from contribution requirements.

Under the Federal Communications Commission’s (“FCC”) Carrier’s Carrier rule, FUSF contribution should only be made on retail, end-user services.

Wholesale carriers, or “Carrier’s Carriers,” that provide services to other carriers who contribute directly to the FUSF (or have customers which contribute directly to the FUSF) may exempt this revenue from contribution.

The Carrier’s Carrier Rule exempts revenue from FUSF contribution obligations on the basis of “wholesale” sales if the carrier can reasonably certify that their reseller-customers, or the reseller’s own carrier-customers, are directly contributing to FUSF.

Revenue not verified in accordance with the Carrier’s Carrier Rule must be classified as retail, end-user revenue and will be subject to direct FUSF contribution.

Specifically, wholesale carriers that do not maintain necessary documentation of direct contributor status from reseller-customers (e.g., an exemption certificate) will be responsible for contributing to the FUSF on all un-verified revenue.

This at-a-glance document covers FUSF exemption certificate overview for wholesalers (Carrier’s Carrier).


Related Resources

Related News


Stay informed with the latest legal advisories, news, and other information relevant to your business by signing up to receive our firm’s newsletter:

DISCLAIMER: By subscribing to our firm’s newsletter, you acknowledge that you have read and understand the disclaimers posted to our site.

Ask An Attorney

Disclaimer: Please be advised that contacting our law firm through this contact form does not establish an attorney-client relationship. While we appreciate your interest in our services, we cannot guarantee the confidentiality of any information shared until an attorney-client relationship has been formally established. Therefore, we kindly request that you refrain from submitting any confidential or sensitive information through this form. Any information provided through this form will be treated as general inquiries and not as privileged or confidential communications. Thank you for your understanding.