Background
The Federal Communications Commission (FCC)
and Congress recognize that telephone service provides a vital
link to emergency services, government services, and surrounding
communities. To help promote telecommunications service
nationwide, the FCC, as directed by Congress and with the help
of the Universal Service Administrative Company (USAC),
administers the federal Universal Service Fund (USF).
Programs
The Federal Universal Service Fund
pays for four programs. They are:
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Lifeline/Link-Up. This
program provides discounts on monthly service and
initial telephone installation or activation fees for
primary residences to income-eligible consumers. For
additional information see our consumer fact sheet at
www.fcc.gov/cgb/consumerfacts/lllu.html.
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High-Cost. This program
ensures that consumers in all regions of the nation have
access to telecommunications services at rates that are
affordable and reasonably comparable to those in urban
areas.
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Schools and Libraries. This
program makes discounts available to eligible schools
and libraries for eligible telecommunications services,
Internet access and internal connections. It is intended
to ensure that schools and libraries have access to
affordable telecommunications and information services.
For additional information see our consumer fact sheet
at
www.fcc.gov/cgb/consumerfacts/usp_Schools.html.
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Rural Health Care. This
program helps link health care providers located in
rural areas to urban medical centers so that patients
living in rural America will have access to the same
advanced diagnostic and other medical services that are
enjoyed in urban communities. For additional information
see our consumer fact sheets at
www.fcc.gov/cgb/consumerfacts/usp_RuralHealthcare.html
and
www.fcc.gov/cgb/consumerfacts/RuralHealthProgram.html.
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Who Pays for Universal Service?
All telecommunications service providers and
certain other providers of telecommunications must contribute to
the federal USF based on a percentage of their interstate and
international end-user telecommunications revenues. These
companies include wireline phone companies, wireless phone
companies, paging service companies, and certain Voice over
Internet Protocol (VoIP) providers.
Some consumers may notice a “Universal
Service” line item on their telephone bills. This line item
appears when a company chooses to recover its USF contributions
directly from its customers by billing them this charge. The FCC
does not require this charge to be passed on to customers. Each
company makes a business decision about whether and how to
assess charges to recover its Universal Service costs. These
charges usually appear as a percentage of the consumer’s phone
bill. Companies that choose to collect Universal Service fees
from their customers cannot collect an amount that exceeds their
contribution to the USF. They also cannot collect any fees from
a Lifeline program participant.
How Much Do Companies Contribute for
Universal Service?
Companies contribute a certain percentage of
the amount billed to their residential and business customers
for interstate and international calls. The exact percentage
that companies contribute is adjusted every quarter based on
projected demand for Universal Service funding.
I Can’t Afford to Pay Full Price for
Telephone Service. What Federal Programs Provide Financial
Assistance?
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Link-Up America helps
income-eligible consumers initiate telephone service. This
program pays one-half or up to $30 of the initial installation
fee for a traditional, wireline telephone, or activation fee for
a wireless telephone, for the primary residence. It also allows
subscribers to pay the remaining amount that they owe on a
deferred schedule, interest free.
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Lifeline Assistance provides
discounts on basic monthly telephone service at the primary
residence for qualified telephone subscribers. These discounts
can be up to $10.00 per month, depending on your state.
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). For additional
information see our consumer fact sheet at
www.fcc.gov/cgb/consumerfacts/tribalfactsheet.html.
The Lifeline and Link-Up programs are
available to qualifying consumers in every state, territory, and
commonwealth. Eligibility criteria vary by state. You should
contact your local telephone company for more information about
these programs, to determine whether or not you qualify for
discounts, and to apply for discounts if you qualify. You can
also contact your state public service commission for
information. The contact information for your state public
service commission can be found on the Web site of the National
Association of Regulatory Utility Commissioners,
www.naruc.org/commissions.cfm, or in the blue pages or
government section of your local telephone directory. To find
the eligibility requirements for your state, visit the USAC Web
site, at
www.lifelinesupport.org.
Does the FCC’s Schools and Libraries
Support Mechanism Duplicate State and Local Efforts?
No. The FCC's Schools and Libraries program
complements the efforts of states and localities to link the
nation’s classrooms and libraries to the information
superhighway. Universal Service support provides discounts only
for telephone service, Internet access, and internal
connections. The discounts range from 20 to 90 percent,
depending on the household income level of students in the
community and whether the school or library is located in a
rural or urban area.
For More Information
For information about other
telecommunications issues, visit the FCC’s Consumer &
Governmental Affairs Bureau Web site at
www.fcc.gov/cgb, or contact the FCC’s
Consumer Center by e-mailing
fccinfo@fcc.gov; calling 1-888-CALL-FCC (1-888-225-5322)
voice or 1-888-TELL-FCC (1-888-835-5322) TTY; faxing
1-866-418-0232; or writing to:
Federal Communications
Commission
Consumer & Governmental Affairs Bureau
Consumer Inquiries and Complaints Division
445 12th Street, SW
Washington, D.C. 20554.
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