Universal Service has been central to the FCC’s mission since the Communications Act of 1934 created the agency and committed our nation to making vital communications services accessible to all Americans. The Universal Service Fund has helped connect virtually every American to our 20th Century communications grid.
Now, the FCC is in the process of reforming, streamlining and modernizing its universal service programs to drive investment in and access to 21st Century broadband and voice services. These efforts are focused on addressing waste and inefficiency and targeting support for broadband.
The goals of Universal Service under the 1996 Telecommunications Act are to:
- 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
The Commission established four programs to fulfill these goals. They are:
- The High-Cost program
- The Lifeline (low income) program, including initiatives for Native Americans
- The Schools and Libraries program, commonly referred to as E-rate
- The Rural Health Care program
These programs are funded by the Universal Service Fund. Telecommunications providers must contribute to the fund through an assessment on their interstate and international revenues. The Commission appointed the Universal Service Administrative Company, or USAC, to administer the four programs and the Universal Service Fund.
Detailed statistical information about the Universal Service Fund is available in the annual Monitoring Report.
