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NEWS
Federal Communications Commission

News Media Information 202 / 418-0500

445 12th Street, S.W.

Internet: http://www.fcc.gov

Washington, D. C.  20554

TTY: 1-888-835-5322

This is an unofficial announcement of Commission action.  Release of the full text of a Commission order constitutes official action.
See MCI v. FCC. 515 F 2d 385 (D.C. Circ 1974).

FOR IMMEDIATE RELEASE:
NEWS MEDIA CONTACT:
April 27, 2012
Mark Wigfield, 202-418-0253
Email: mark.wigfield@fcc.gov

FCC REFORMS SEEK EFFICIENT, FAIR USF CONTRIBUTION SYSTEM 

Unanimous Commission Seeks Comment on Reforms To Reduce Disputes, Simplify Compliance, and 

Promote Competition

Washington, D.C. – Continuing its overhaul and modernization of the Universal Service Fund (USF), the 
Federal Communications Commission today launched reform of how funding is collected to support 
universal access to voice and broadband. 
Sweeping reforms adopted by the FCC in the past two years have increased fiscal responsibility and cut 
waste in the USF, while updating it to help bring high-speed Internet and voice service to all. With 
reforms in place to contain spending, today’s Further Notice of Proposed Rulemaking examines ways to 
pay for USF more fairly and efficiently. 
USF is paid for by an assessment on the interstate and international revenues of carriers, such as long-
distance revenues, as well as Voice over Internet Protocol (VoIP providers). Contributors may bill 
consumers and business customers for the cost. The Notice builds on the FCC’s efforts to limit the Fund’s 
burden on consumers and businesses while modernizing USF for the 21st century.
The current contribution system has given rise to uncertainty, inefficiency, and market distortions.  
Outdated rules and loopholes mean that services that compete directly against each other may face 
different treatment. Universal service charges billed to consumers and businesses vary by company 
despite virtually identical service offerings, creating confusion and distorting markets.  And compliance 
costs have increased as companies struggle to apply old rules to new products.  
The Notice seeks comments on reforms of the USF contribution system that will seek to promote 
efficiency, fairness and sustainability.  
In particular, the Notice asks:
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What services and service providers should contribute to the fund
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How should contributions should be assessed -- on revenues, the number of connections, by 
phone numbers, or a hybrid approach
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How to reduce the cost, promote transparency and increase clarity of the contribution system
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Whether consumers could benefit from increased transparency and limitations on how providers 
recover their USF costs

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The overarching goal of reform: ensuring delivery of voice and broadband communications to all 
Americans and achieving core FCC objectives of promoting broadband innovation, investment and 
adoption. The Notice seeks comment on the appropriate transition periods for reforms to allow service 
providers and consumers to adapt.
Action by the Commission April 27, 2012 by Further Notice of Proposed Rulemaking (FCC 12-46).  
Chairman Genachowski, Commissioners McDowell and Clyburn. Separate Statements issued by 
Chairman Genachowski, Commissioners McDowell and Clyburn.
Wireline Competition Bureau Staff Contact:  Vickie Robinson at 202-418-2732
-FCC-
News about the Federal Communications Commission can also be found
on the Commission’s web site www.fcc.gov.

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