Amended by the Telecommunication Act of 1996. broadband services in rural areas as part of the U SO . AUSAC is the administrator of the Alaska Universal Service Fund, which was established by the Regulatory Commission of Alaska (formerly the Alaska Public Utilities Commission) on December 29, 1998. Last year, the Public Utility Commission projected that the Universal Service Fund could run out of money by December 2020. For example, consumers' subscriptions to traditional telephone services have fallen while their subscription rate to wireless services have been rising consistently. Tables. This is a print on demand edition of an important, hard-to-find report. Phone companies and a pack of rural state legislators are asking utility regulators to increase the tax on interstate telecommunications services that fills the Texas Universal Service Fund; a . FEDERAL UNIVERSAL SERVICE FUND RECOVERY CHARGE a. "[76] Pai argued that it is necessary to halt some funds towards programs riddled with fraud because "putting the designations on hold gives the FCC the chance to make sure the process is legally defensible and to avoid potentially stranding customers if the courts ultimately deem the process unlawful". HISTORY OF UNIVERSAL SERVICE AND THE UNIVERSAL SERVICE FUND, The Federal Communications Commission was created by the Communications Act of 1934. from the fund. [40] Residents of Native American Indian and Alaska Native tribal communities may qualify for enhanced Lifeline assistance (up to an additional $25.00) and expanded Link-Up support (up to an additional $70.00). There is a rising concern that more recent developments in telecommunications are just as important to the consumer as these older technologies. As of the end of 2019, telecommunication companies were required to contribute 25%[61] of their revenue to the fund. The Commission also set service standards in order to ensure the highest value for the Universal Service Fund. Additionally, consideration of revenue contribution to the Universal Service Fund would be radically revised, given that the creation of obligatory broadband and mobile communication access would require a wide range of broadband, mobile, and Voice over Internet Protocol (VoIP) service providers to contribute a portion of their revenue to the fund. [30] In 2013, also during "Phase I", CenturyLink accepted another $54 million,[31] and AT&T accepted $100 million. ", "Universal Service Fund Reform: Expanding Broadband Internet Access in the United States", "ZTE Not Part of China Trade Talks, Will Not be Let off 'Scot-Free' if Export Ban is Lifted, Kudlow Says", "The Future of Universal Service: Ensuring the Sufficiency and Stability of the Fund", "Actions – S.2686 – 109th Congress (2005–2006): Communications, Consumer's Choice, and Broadband Deployment Act of 2006", http://thomas.loc.gov/cgi-bin/bdquery/z?d110:s101, http://thomas.loc.gov/cgi-bin/bdquery/z?d111:h.res.176, "Boucher, Terry Introduce Universal Service Reform Act of 2010", "FCC Moves to Expand Rural Broadband Deployment by Modernizing and Reforming Universal Service Support for Small Carriers", "Lawmakers push FCC chief to boost rural broadband", "New FCC Chairman Ajit Pai Is Off to an Orwellian Start", "FCC chair wants to impose a cap on broadband funding for poor families", social welfare programs in the United States, Supplemental Nutrition Assistance Program, School meal programs in the United States, Food Distribution Program on Indian Reservations, Federal Supplemental Educational Opportunity Grant, Single Family Housing Direct Home Loans (Section 502), Outreach and Assistance for Socially Disadvantaged Farmers and Ranchers, Low Income Home Energy Assistance Program, https://en.wikipedia.org/w/index.php?title=Universal_Service_Fund&oldid=1044889299, Non-profit organizations based in the United States, Articles with dead external links from August 2021, Articles with permanently dead external links, Articles with unsourced statements from August 2021, Articles with unsourced statements from July 2020, Creative Commons Attribution-ShareAlike License, Promote the availability of quality services at just, reasonable and affordable rates for all consumers, Increase nationwide access to advanced telecommunications services, Advance the availability of such services to all consumers, including those in low income, rural, insular, and high cost areas, at rates that are reasonably comparable to those charged in urban areas, Increase access to telecommunications and advanced services in schools, libraries and rural health care facilities, Provide equitable and non-discriminatory contributions from all providers of telecommunications services to the fund supporting universal service programs. Provides an overview of current federal and state universal service support programs and discusses the potential impact of emerging Internet-based voice communications on how these programs are funded. As of 2012, 17 million households received a $9.25 subsidized discount through the program. [37], Since 1985, the Lifeline program has helped low-income people pay for phone service; first landlines, then cellphones, and as of 2016 it also offers the option of Internet connectivity. Carriers providing international services also must contribute to the Universal Service Fund. Lanham, MD: Lexington Books. Forms and Information for Telecommunications Companies. The Indiana Universal Service Fund The Indiana Universal Service Fund (IUSF) was established in 2004 by Commission Order as a revenue replacement fund in response to revenue reductions spurred by changes in Federal Communications Commission (FCC) policies. Overall revenues reported by telecommunications companies have steadily increased, if information service revenues are included. Reforms are Needed for Financing the Universal Service Fund. The Universal Service Fund helps communities and people across the U.S. stay connected to the information, resources, and care they need. [13] The main principle behind the act was that there should be only one system in each community through which all users communicate. The Low-Income Support "assists low-income customers by helping to pay for monthly telephone charges so that telephone service is more affordable. The Schools and Libraries Corporation and the Rural Health Care Corporation were merged into the USAC on January 1, 1999. Pakistan's Universal Service Fund was established by the Ministry of Information Technology, which I had the pleasure of visiting earlier on. This report shows how Universal Service Fund support for schools and libraries is used by school districts and libraries around the country. Block 1: List revenue information for the 3-month period beginning and ending as indicated. [5][6] Universal Service charges should not be confused with what are sometimes referred to in telephone company bills as "Federal Subscriber Line" charges, which are access fees charged by telecommunications companies, not the local or federal government. FEDERAL UNIVERSAL SERVICE FUND (FUSF) The Federal Universal Service Fund (FUSF) surcharge is billed at the FUSF rate established by the FCC. Universal service is paid for by contributions from telecommunications carriers, including wireline and wireless companies, and interconnected Voice over Internet Protocol providers, including cable companies that provide voice service, based on an assessment of their interstate and international end- user revenues. Below is a chart of previous quarterly rates. The company identification number shown in the upper right corner allows revenue information to be matched with telecommunications service provider (TSP) identification information provided on the OUS1 Worksheet. universal service - affordable, nationwide telephone service to include among The Telecommunications Act of 1996 led to the creation of the Universal Service Administrative Company, or USAC, an independent, not-for-profit corporation designated as the administrator of the federal Universal Service Fund by the FCC. the Library Services and Technology Act. However, wireless has traditionally been a competitive industry, which has resulted in a variety of innovative services for consumers, but means that supporting wireless companies requires a complex understanding of how to allocate funding on a shared basis, in order to avoid injury to the positive forces of competition. [27], As part of the National Broadband Plan proposed in March 2010, the FCC proposed reorganizing the High Cost program into a new "Connect America Fund", which will include both voice and 4 Mbit/s internet connectivity. The Universal Service Fund (USF) is a system of telecommunications subsidies and fees managed by the United States Federal Communications Commission (FCC) intended to promote universal access to telecommunications services in the United States. Universal service is also the name of a fund and the category of FCC programs and policies to implement this principle. Retrieved from, Communications Opportunity, Promotion, and Enhancement Act of 2006, National broadband plans from around the world, "Contribution Factor & Quarterly Filings – Universal Service Fund (USF) Management Support", "Federal Universal Service Fund contribution increased by 30 percent", "Proposed First Quarter 2016 Universal Service Contribution Factor", "Proposed Fourth Quarter 2000 Universal Service Contribution Factor", "Proposed 4th Quarter USF Contribution Factor is 16.1 percent", "Title II is wrong way to keep an open Internet", "Opponents of net neutrality already threatening lawsuits to derail progress", "Fact Sheet: Chairman Wheeler Proposes New Rules for Protecting the Open Internet", "The Communication Act Policy Toward Competition: A Failure", http://www.fcc.gov/wcb/tapd/universal_service/, http://energycommerce.house.gov/Press_111/20090312/boucher_open.pdf, "Stimulus Grants, Subsidy Reform Key to Making Broadband Internet Available to All", details Universal Service Fund switch to broadband, "FCC Votes to End Telephone Subsidies, Shift to Broadband", "Connect America Fund & Intercarrier Compensation Reform Order and FNPRM Executive Summary", "National Broadband Plan arrives, quoting Shakespeare", "AT&T, Verizon Say No Thanks to Broadband Rollout Funds", "CenturyLink takes $54M in CAF funds to expand rural broadband reach", "AT&T accepts $100M from FCC's Connect America Fund to expand rural broadband", "FCC adds $9 billion to broadband subsidy fund", "FCC Approves Framework for Phase II of CAF", "FCC rural broadband initiative back on track after court appeal", "FCC's Connect America Fund upheld by appeals court", "FCC kicks off $300M Mobility Fund auction for rural mobile broadband", FCC Votes To Propose New Privacy Rules For Internet Service Providers, "Who gets rich off 'free' government phones", "How to Get the Government to Cover Your Cell Phone Bill(s)", "FCC Reforms, Modernizes Lifeline Program for Low-Income Americans", "The Universal Service Fund: Lifeline Program Modernization", "The Lifeline Fund: Money Well Spent? The USAC receives contributions from all companies providing interstate and international telephone and Voice over Internet Protocol (VoIP) service. The Order adopted today initially designates Huawei Technologies Company and ZTE Corp. In 2011, the FCC made material changes in the USF program, largely benefiting the largest traditional telephone companies in the country, which now have double the access to funding than they had before those changes. Universal Service Fund was established by the Government of Pakistan (Ministry of Information Technology) to spread the benefits of the telecom revolution to all corners of Pakistan. November 2019 ban on the use of universal service support to purchase equipment or services from companies posing a national security threat. For example, an eligible telecommunications company must be able to demonstrate its ability to remain functional in emergency situations. The Act established principles for universal service that specifically focused on increasing access to evolving services for consumers living in rural and insular areas, and for consumers with low-incomes. (1934). Under President Ronald Reagan, the FCC shifted its focus from "social equity to an economic efficiency objective," which it claimed was a primary purpose of the Communications Act of 1934. has developed the USF Strategic Audit Plan to provide overall goals and Citing reform to the Universal Service Fund as a means "to better serve rural America," Verizon recommended that a limit be set on the size of USF's high-cost fund, competitive bidding wars be employed to determine which company expand service to unserved areas, structure a "wire-center approach" model to replace statewide cost averaging, restructure how contributions to the USF are determined, and impose a deadline on the FCC for completion of their reform of inter-carrier compensation. The Act also called for the creation of a Federal-State Joint Board on Universal Service to make recommendations to implement the universal service provisions of the Act. The combined state and local taxes can range from 0-17% or more. It calls for "rapid, efficient, Nation-wide, and world-wide wire and radio communication service with adequate facilities at reasonable charges" to "all the people of the United States." The four case studies included are: Grosse Île and the Irish National Memorial site in Canada, the Chaco Culture National Historical Park in the USA, the Port Arthur historic site in Australia, and Hadrian's Wall. These providers contribute to the fund "based on their interstate and international end-user telecommunications revenues." The 1996 Act explicitly adopted principles to guide universal service policy. [76], In early 2018, the FCC Chairman Ajit Pai proposed a plan to scale back the USF's Lifeline program. "Universal" was originally used by AT&T to mean, "interconnection to other networks, not service to all customers".
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