47 CFR § 54.616 - Upfront payments.

---
identifier: "/us/cfr/t47/s54.616"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "47 CFR § 54.616 - Upfront payments."
title_number: 47
title_name: "Telecommunication"
section_number: "54.616"
section_name: "Upfront payments."
chapter_name: "FEDERAL COMMUNICATIONS COMMISSION"
subchapter_number: "B"
subchapter_name: "COMMON CARRIER SERVICES"
part_number: "54"
part_name: "UNIVERSAL SERVICE"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "47 U.S.C. 151, 154(i), 155, 201, 205, 214, 219, 220, 229, 254, 303(r), 403, 1004, 1302, 1601-1609, and 1752, unless otherwise noted."
regulatory_source: "62 FR 32948, June 17, 1997, unless otherwise noted."
cfr_part: "54"
---


# 54.616 Upfront payments.

(a) Upfront payments include all non-recurring costs for services, equipment, or facilities, other than reasonable and customary installation charges of up to $5,000.

(b) The following limitations apply to all upfront payments:

(1) Upfront payments associated with services providing a bandwidth of less than 1.5 Mbps (symmetrical) are not eligible for support; and

(2) Only consortium applicants are eligible for support for upfront payments.

(c) The following limitations apply if a consortium makes a request for support for upfront payments that exceeds, on average, $50,000 per eligible site in the consortium:

(1) The support for the upfront payments must be prorated over at least three years; and

(2) The upfront payments must be part of a multi-year contract.