Reforming and Modernizing theFCC

’

s Universal Service Programs

May 2012

 

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The Universal Service Fund

•

Based on FCC

’

s historic commitment to universal service

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Expanded in Telecommunications Act of 1996

Contributions flow from telecommunications providers via anassessment on their interstate revenues . . .. . . into the four Universal Service Fund programs. . . which distributes funds to eligible entities (primarilytelephone companies) to reduce cost of serviceWireline telco Wireless telco Cable

High-Cost Lifeline E-RateRuralHealth Carefor ruralAmericansfor low-incomeAmericansforschools andlibrariesforrural healthproviders

 

Connect America Fund

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Goals 

•

Universal service

Robust home & business broadband to over 18M unservedExpand mobile broadband and voice coverage where it

’

s lackingProtect existing voice

 

and broadband service in rural areas

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Fiscal responsibility

Fairness to consumers who bear burden of payingAddress bipartisan calls to eliminate inefficiency and control costs

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Business realities

Reasonable transition periods

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