Goto Section: 54.5 | 54.8 | Table of Contents

FCC 54.7
Revised as of December 6, 2018
Goto Year:2018 | 2020
  § 54.7   Intended use of federal universal service support.

   (a) A carrier that receives federal universal service support shall use
   that support only for the provision, maintenance, and upgrading of
   facilities and services for which the support is intended.

   (b) The use of federal universal service support that is authorized by
   paragraph (a) of this section shall include investments in plant that
   can, either as built or with the addition of plant elements, when
   available, provide access to advanced telecommunications and
   information services.

   (c) For those eligible telecommunications carriers as defined in § 54.5
   receiving universal service support pursuant to subparts K and M of
   this part, ineligible expenses include but are not limited to the
   following:

   (1) Personal expenses of employees, executives, board members, and
   contractors, and family members thereof, or any other individuals
   affiliated with the eligible telecommunications carrier, including but
   not limited to personal expenses for housing, such as rent or
   mortgages, vehicles for personal use and personal travel, including
   transportation, lodging and meals;

   (2) Gifts to employees; childcare; housing allowances or other forms of
   mortgage or rent assistance for employees except that a reasonable
   amount of assistance shall be allowed for work-related temporary or
   seasonal lodging; cafeterias and dining facilities; food and beverage
   except that a reasonable amount shall be allowed for work-related
   travel; entertainment;

   (3) Expenses associated with: Tangible property not logically related
   or necessary to the offering of voice or broadband services; corporate
   aircraft, watercraft, and other motor vehicles designed for off-road
   use except insofar as necessary or reasonable to access portions of the
   study area not readily accessible by motor vehicles travelling on
   roads; tangible property used for entertainment purposes; consumer
   electronics used for personal use; kitchen appliances except as part of
   work-related temporary or seasonal lodging assistance; artwork and
   other objects which possess aesthetic value;

   (4) Political contributions; charitable donations; scholarships;
   membership fees and dues in clubs and organizations; sponsorships of
   conferences or community events; nonproduct-related corporate image
   advertising; and

   (5) Penalties or fines for statutory or regulatory violations;
   penalties or fees for any late payments on debt, loans, or other
   payments.

   [ 76 FR 73869 , Nov. 29, 2011, as amended at  83 FR 18964 , May 1, 2018]

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Goto Section: 54.5 | 54.8

Goto Year: 2018 | 2020
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