Universal Service
The Telecommunications Act of 1996 included provisions to assure universal service to all consumers throughout the United States, focusing on rural, insular and high-cost areas, as well as low income consumers, and certain social institutions such as libraries, schools and rural health care providers. The Telecommunications Act also established a Universal Service Fund that collects assessments on revenue from interstate telecommunications service and redistributes support to local eligible telecommunications carriers (ETCs) providing supported services to targeted areas.
USTelecom Position
USTelecom believes a sustainable Universal Service Fund is critical to protecting basic, affordable telephone service for all Americans. To restore the long-term health of the Fund, USTelecom members have outlined these key principles:
- Broaden the base of contributors to include all providers and assess contributions primarily on telephone numbers;
- Use reverse auctions to reduce the number of mobile providers in an area receiving support;
- Better target support to rural areas served by larger providers;
- Reduce support to providers with low subscriber rates;
- Adopt changes to restrain fund growth; and
- Apply carrier of last resort obligations uniformly.
Background
Growth in demand for support from the Universal Service Fund combined with the erosion of the contribution bases to the Fund are jeopardizing the future sustainability of the Fund and thus the availability of modern infrastructure offering telecommunications services to many Americans.
Advocacy Efforts
Before the FCC
USTelecom has been actively involved in several proceedings before the Federal Communications Commission involving universal service, including proceedings that have focused on contributions to the Fund and designations of eligible telecommunications carriers (ETCs) to receive support from the Fund. USTelecom has filed written comments and made several ex parte presentations on these issues. USTelecom will continue its advocacy as the FCC moves forward with its considerations of these proceedings.
In Congress
USTelecom continues to provide Congressional testimony, hold policy briefings for Capitol Hill staff and conduct other advocacy activities to educate Congress on this issue.
More Information
2008
2007
- Dec 21 – Ex Parte with Commissioner Adelstein on the USF Cap- Ex Parte
- Nov 30 – Member Letter to Commissioners re CETC USF Cap
- Nov 28 – Ex Partes with FCC Staff (Ex Parte, Ex Parte, Ex Parte, Ex Parte) on the USF Cap
- Jun 6 – filing on Joint Board recommendation
- May 2 – letter to FCC on Joint Board Proposal
- May 1 – USTelecom President and CEO Walter McCormick testimony before the House Subcommittee on Specialty Crops, Rural Development and Foreign Agriculture