How do the applicant and the service provider get paid?
FCC rules require USAC to pay universal service support to service providers and not directly to applicants. Two invoicing options exist: • BEAR The Applicant pays the Service Provider for all products and services and the Applicant (Billed Entity) files a Billed Entity Applicant Reimbursement (BEAR) Form 472 to USAC for reimbursement of eligible products and services (the subsidized amount). The Billed Entity must have paid for the total amount of the products and services provided by the service provider, including both subsidized and non-subsidized components. • SPI The Applicant pays the Service Provider only for the non-eligible products and services (both the non-subsidized portions of the eligible products and services and the non-eligible products and services) and the Service Provider submits a Service Provider Invoice (SPI) Form 474 to USAC for reimbursement of the subsidized portion of eligible products and services. The Service Provider enumerates the amount of the product
