An official website of the United States government
The .gov means it's official.
The site is secure.
View Rule
| View EO 12866 Meetings | Printer-Friendly Version Download RIN Data in XML |
| FCC | RIN: 3060-AF85 | Publication ID: Fall 2008 |
| Title: Implementation of the Universal Service Portions of the 1996 Telecommunications Act | |
| Abstract: As required by the Telecommunications Act of 1996, the Commission sought comment on proposals for reforming universal service. On November 8, 1996, the Federal-State Joint Board on Universal Service issued a recommended decision on changes to the universal service support mechanisms. In addition, on January 10, 1997, the Commission issued an NPRM and NOI on changes to the Board of Directors of the National Exchange Carrier Association (NECA), regarding the administration of universal service. On May 8, 1997, the Commission, at the direction of Congress, released its order implementing the universal service portions of the 1996 Act. On December 30, 1997, the Commission issued the Fourth Order on Reconsideration which made changes and clarifications to the May 8 Order. On June 22, 1998, the Commission issued the Fifth Order on Reconsideration which revised the collection levels for the schools and libraries support mechanism through June 30, 1999, and revised the collection levels for the rural health care support mechanism through December 31, 1998. The Fifth Order on Reconsideration also revised the priority with which schools and libraries and rural health care providers will receive support. On October 28, 1998, the Commission issued the Fifth Report and Order, in which it adopted the model platform for its forward-looking economic cost methodology, which will be used to determine support for non-rural carriers beginning July 1, 1999. On November 21, 1998, the Commission issued the 8th Order on Reconsideration in which it consolidated the administration of universal service into a single entity known as the Universal Service Administrative Company or USAC. On November 25, 1998, the Federal-State Joint Board on Universal Service issued its Second Recommended Decision in which the Joint Board made certain recommendations to the Commission regarding the high-cost support mechanism. On May 28, 1999, the Commission issued the Thirteenth Order on Reconsideration in which it adopted the principles of a Federal high-cost support mechanism that conformed to the Second Recommended Decision and in which it sought further comment on specific elements of the support methodology. In the Thirteenth Order on Reconsideration, the Commission also decided to implement the new high-cost support mechanism on January 1, 2000, instead of July 1, 1999, as previously planned. On May 28, 1999, the Commission also issued a Further Notice of Proposed Rulemaking in which it sought comment on proposed input values to be used in the forward-looking model to determine non-rural LECs' cost of providing supported services in high cost areas. On August 5, 1999, the Commission adopted a Further Notice of Proposed Rulemaking in which it sought comment to ascertain the availability of, and to understand the possible impediments to, deployment and subscribership in unserved and underserved areas of the Nation, including tribal lands and other insular areas. On November 1, 1999, the Commission issued the Fourteenth Order on Reconsideration, in which it eliminated the requirement that only carriers that have been certified as eligible telecommunications carriers may receive credit against their universal service contributions for providing telecommunications services to rural health care providers at the lower urban rates. On November 1, 1999, the Commission also issued the Fifteenth Order on Reconsideration, in which it authorized support for any commercially available telecommunications service regardless of the bandwidth, and simplified the method for determining how much support a rural health care provider can receive. On November 2, 1999, the Commission issued the Ninth Report and Order and Eighteenth Order on Reconsideration in which it adopted a new forward-looking high-cost support mechanism that will enable States to ensure the reasonable comparability of non-rural carriers' intrastate rates. On November 2, 1999, the Commission also issued the Tenth Report and Order in which it completed the selection of a cost model to estimate forward-looking cost by adopting input values for the previously adopted cost model. On June 30, 2000, the Commission issued the Twelfth Report and Order, Memorandum Opinion and Order, and Further Notice of Proposed Rulemaking, in response to the Further Notice of Proposed Rulemaking it adopted on August 5, 1999. In the Twelfth Report and Order, the Commission adopted measures to promote telecommunications subscribership and infrastructure deployment within American Indian and Alaska Native tribal communities. On October 12, 2000, the Commission released a Further Notice of Proposed Rulemaking and Order to seek comment on proposals to modify the Commission's rules relating to contributions to the Federal universal service support mechanisms. On January 12, 2001, the Commission released a Further Notice of Proposed Rulemaking seeking comment on the Recommended Decision of the Federal-State Joint Board on Universal Service (Joint Board) regarding a plan for reforming the universal service support mechanism for rural carriers. The Joint Board sent to the Commission the Rural Task Force Recommendation as a good foundation for implementing rural high-cost reform. The Rural Task Force recommends the use of a modified version of the current high-cost loop support mechanism based on carriers' embedded costs. On May 23, 2001, the Commission released the Fourteenth Report and Order, Twenty-Second Order on Reconsideration and Further Notice of Proposed Rulemaking. In the Fourteenth Report and Order, the Commission adopted a 5-year plan that makes modifications to the high-cost loop support mechanism for rural carriers. These modifications were based on the recommendation of the Joint Board and will provide predictable levels of support so that rural carriers can continue to provide affordable service in rural America, while ensuring that consumers in all areas of the nation, including rural areas, have access to affordable and quality telecommunications services. On March 14, 2001, the Commission issued an order modifying the methodology used to assess contributions to universal service. The methodology was modified to reduce the interval between the accrual of revenues and the assessment of contributions based on those revenues. The order reduced the interval from an average of one year to an average of six months. On May 8, 2001, the Commission issued a Notice of Proposed Rulemaking which sought comment on how to streamline and reform both the manner in which the Commission assesses carrier contributions to the universal service fund and the manner in which carriers may recover those costs from their customers. On May 22, 2001, the Commission adopted a 5-year interim freeze of the part 36 jurisdictional separations rules, pending comprehensive reform of the separations process. The 5-year interim freeze was based upon the July 21, 2000, Recommended Decision of the Federal-State Joint Board on Separations. Under the interim freeze, the part 36 categories and jurisdictional allocation factors of price cap incumbent LECs are frozen, while rate-of-return carriers had the option to freeze only their jurisdictional allocation factors. The interim freeze is in effect from July 1, 2001, to June 30, 2006, or until comprehensive reform is completed, whichever comes first. On November 8, 2001, the Commission released the Fifteenth Report and Order and Further Notice of Proposed Rulemaking (Further Notice) reforming the interstate access charge and universal service support system for rate-of-return incumbent carriers. The Order established a new interstate support mechanism to replace implicit support in the interstate access rate structure of rate-of-return carriers with explicit, portable support. Among other things, the Further Notice sought comment on consolidating the existing Long Term Support mechanism with the new support mechanism created in the Order. On January 25, 2002, the Commission released a Further Notice of Proposed Rulemaking and Order (Further Notice), in which it sought comment on modifications to the rules governing the schools and libraries support mechanism. The modifications address changes that would make the program more efficient, ensure that the benefits of the program are distributed in an equitable manner, and prevent waste, fraud, and abuse. In addition, the order denied certain petitions for reconsideration relating to unused funds. On February 15, 2002, the Commission released a Notice of Proposed Rulemaking and Order, in which it sought comment on the issues from the Ninth Report and Order remanded by the United States Court of Appeals for the Tenth Circuit. The Ninth Report and Order established a Federal high-cost universal service support mechanism for non-rural carriers based on forward-looking economic costs. In addition, the order referred these issues to the Federal-State Joint Board on Universal Service for a recommended decision. On February 15, 2002, the Commission issued a Notice of Proposed Rulemaking examining the appropriate legal and policy framework under the Communications Act of 1934, as amended, for broadband access to the Internet provided over domestic wireline facilities. On February 26, 2002, the Commission issued a Further Notice of Proposed Rulemaking and Report and Order, in which it sought comment on specific proposals to change the manner in which universal service contributions are assessed and recovered, including one proposal to assess contributions based on the number and capacity of connections provided to a public network. This proceeding also made certain modifications to the existing contribution system. On April 19, 2002, the Commission issued a Notice of Proposed Rulemaking in which it sought comment on specific proposals to: clarify how it should treat eligible entities that also perform functions that are outside the statutory definition of "health care provider;" provide support for Internet access; and change the calculation of discounted services, including the calculation of urban and rural rates. On December 13, 2002, the Commission issued an Order and Second FNPRM in which it sought further comment on three specific connection-based universal service contribution methodologies. This Order also made interim changes to the contribution methodology to ensure the viability of the fund in the near term. On February 25, 2003, the Commission issued an NPRM in which it sought comment on the Recommended Decision issued by the Federal-State Joint Board on Universal Service regarding the definition of services supported by universal service. On February 26, 2003, the Commission issued a Public Notice in which it sought comment on a staff study of several alternative universal service contribution methodologies. On April 30, 2003, the Commission issued a Second Report & Order and Further Notice of Proposed Rulemaking, in which it simplified and streamlined the operation of the schools and libraries support mechanism. In addition, it sought comment on further proposals to refine the support mechanism, including the carry-forward of unused funds. On May 21, 2003, the Commission issued a Twenty-fifth Order on Reconsideration, Report and Order, and Further Notice of Proposed Rulemaking, in which it resolved several petitions for reconsideration of the Twelfth Report and Order. In addition, it sought further comment on ways to provide enhanced Lifeline support to near reservation areas. On June 9, 2003, the Commission released a Notice of Proposed Rulemaking, in which it sought comment on changes to the low-income support mechanisms recommended by the Joint Board. On July 3, 2003, the Commission released an Order eliminating the requirement that the National Exchange Carrier Association hold annual elections for its board of directors and that its directors serve one-year terms. On July 14, 2003, the Commission released an Order and Order on Reconsideration adopting the Joint Board's recommendations regarding the services supported by universal service. On July 24, 2003, the Commission released an Order adopting measures to ensure that implementation of the Children's Internet Protection Act complies with a US Supreme Court decision. 68 FR 47453. On October 27, 2003, the Commission released an Order on Remand, Memorandum Opinion and Order, and Further Notice of Proposed Rulemaking modifying the High-Cost mechanism for non-rural carriers and seeking comment on certain issues relating to rate review and an expanded certification process. Order: 68 FR 69622. FNPRM: 68 FR 69641. On November 17, 2003, the Commission released a Report and Order, Order on Reconsideration, and Further Notice of Proposed Rulemaking improving the Rural Healthcare Support mechanism and seeking comment on modifications to the definition of "rural area" for the Rural Healthcare Support mechanism. 68 FR 74492. On December 23, 2003, the Commission released the Third Report and Order and Second Further Notice of Proposed Rulemaking adopting rules to limit waste, fraud and abuse in the Schools and Libraries mechanism and seeking comment on additional measures to limit waste, fraud, and abuse. Order: 69 FR 6181. FNPRM: 69 FR 6229. On February 26, 2004, the Commission released a Report and Order and Further Notice of Proposed Rulemaking modifying regulation of rate-of-return carriers and seeking comment on further changes to regulation of rate-of-return carriers. 69 FR 13794. On April 29, 2004, the Commission released a Report and Order and Further Notice of Proposed Rulemaking improving the effectiveness of the low-income mechanism and seeking comment on whether the Commission should add an income-based criterion of 150 percent of the Federal Poverty Guidelines. On May 14, 2004, the Commission issued a Notice of Proposed Rulemaking that sought comment on various abbreviated dialing arrangements that could be used by state One Call notification systems in compliance with the Pipeline Safety Improvement Act of 2002. On June 8, 2004, the Commission issued a Notice of Proposed Rulemaking that sought comment on the Recommended Decision of the Joint Board on Universal Service concerning the process for designation of eligible telecommunications carriers (ETCs) and the Commissions rules regarding high-cost universal service support. On June 28, 2004, the Commission issued an Order that asked the Joint Board to review the Commissions rules relating to the high-cost universal service support mechanism for rural carriers and to determine the appropriate rural mechanism to succeed the 5-year plan adopted in the Rural Task Force Order. On June 30, 2004, the Commission issued an Order appointing the Honorable Robert Nelson, Commissioner of the Michigan Public Service Commission to serve on the Federal-State Joint Board on Universal Service. On July 20, 2004, the Commission issued an Order that granted, in part, waiver requests filed by AT&T, SBC and Verizon regarding the true-up process for universal service contributions based on 2003 revenues. On July 30, 2004, the Commission issued an Order on Reconsideration and Fourth Report and Order that addressed Petitions for Reconsideration of the Commitment Adjustment Order, which directed the Universal Service Administrative Company to cancel any E-rate funding commitments that were made in violation of the Telecommunications Act of 1996 and to recover any erroneously distributed funds from service providers. On August 13, 2004, the Commission issued a Fifth Report and Order and Order that adopted measures to protect against waste, fraud and abuse in the administration of the Schools and Libraries Universal Service Support Mechanism. The document also resolved a number of issues that have arisen from audit activities conducted as part of ongoing oversight over the administration of the universal service fund (USF) and addressed programmatic concerns raised by the Office of Inspector General. On August 26, 2004, the Commission issued an Order that granted in part NeuStars Request to perform certain changes and transactions that do not affect its neutrality without Commission approval. On September 9, 2004, the Commission issued a Fourth Report to Congress that concluded the Commissions Fourth inquiry under section 706 of the Telecommunications Act of 1996. It concludes that the overall goal of section 706 is being met, and that advanced telecommunications capability is being deployed to all Americans in a reasonable and timely fashion. On September 16, 2004, the Commission issued a Second Further Notice of Proposed Rulemaking that sought comment on the North American Numbering Council recommendation for reducing the time interval for intermodal porting. The Commission also sought comment on implementation issues in the event that a reduced intermodal porting interval is adopted. On September 27, 2004, the Commission issued a Memorandum Opinion and Order that dismissed as moot Accipiters Application for Review of a decision by the Accounting and Audits Division made on delegated authority, denying Accipiters request for waiver of 47 CFR sections 36.611 and 36.612. On October 29, 2004, the Commission issued a Memorandum Opinion and Order that granted the Application for Review of a decision by the Common Carrier Bureau made on delegated authority, which granted Sandwich Isles a waiver to be treated as an incumbent Local Exchange Carrier serving a previously unserved area for purposes of receiving high-cost universal service support. On October 29, 2004, the Commission issued an Order that denied a petition for reconsideration filed by Business Service Center, Inc., Mobile Phone of Texas, Inc., and 3 Rivers PCS, Inc. requesting that the Commission reconsider its safe harbor guidelines, adopted in 1998, which allow several categories of carriers to assume that a certain percentage of their telecommunications revenues is interstate for universal service reporting and contribution purposes. On November 29, 2004, the Commission issued an Order on Reconsideration that addressed twelve petitions for reconsideration of the Universal Service First Report and Order and the Fourth Order on Reconsideration. These petitions concerned, among other issues, the high-cost and Schools and Libraries mechanisms, and contribution methodology. On December 17, 2004, the Commission issued a Second Report and Order, Order on Reconsideration, and Further Notice of Proposed Rulemaking that modified its rules to improve the effectiveness of the rural health care universal service support mechanism. On December 30, 2004, the Commission issued an Order that approved the nominations of two state commissioners, Elliott Smith and Ray Baum to the Federal-State Joint Board on Universal Service. On January 10, 2005, the Commission issued an Order and Order on Reconsideration that amended 47 CFR section 54.305 so that it does not apply to transfers to exchanges between non-rural carriers after the phase-down of interim hold-harmless support, and granted a request by the National Telephone Cooperative Association to provide that rural carriers may receive safety valve support for investment made in the first year of operating acquired exchanges. On January 10, 2005, the Commission issued an Order that denied in part and granted in part a request by Valor for waiver of 47 CFR section 54.305. The waiver allowed it to receive additional safety valve support consistent with the modifications to the safety valve mechanism contained in the Companion Order. | |
| Agency: Federal Communications Commission(FCC) | Priority: Substantive, Nonsignificant |
| RIN Status: Previously published in the Unified Agenda | Agenda Stage of Rulemaking: Long-Term Actions |
| Major: No | Unfunded Mandates: No |
| CFR Citation: 47 CFR 54 | |
| Legal Authority: 47 USC 151 et seq | |
Legal Deadline:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Timetable:
|
| Regulatory Flexibility Analysis Required: Yes | Government Levels Affected: Undetermined |
| Small Entities Affected: Businesses, Governmental Jurisdictions | |
| Included in the Regulatory Plan: No | |
| RIN Data Printed in the FR: Yes | |
|
Agency Contact: Adrian Wright Telecommunications Policy Analyst Federal Communications Commission Wireline Competition Bureau, 445 12th Street SW., Washington, DC 20554 Phone:202 418-0792 Email: adrian.wright@fcc.gov |
|
|
Reginfo.gov
An official website of the U.S. General Services Administration and the Office of Management and Budget
Looking for U.S. government
information and services?
Visit USA.gov