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FCC RIN: 3060-AF85 Publication ID: Fall 2014 
Title: Implementation of the Universal Service Portions of the 1996 Telecommunications Act 
Abstract:

The Telecommunications Act of 1996 expanded the traditional goal of universal service to include increased access to both telecommunications and advanced services—such as high-speed Internet—for all consumers at just, reasonable, and affordable rates. The Act established principles for universal service that specifically focused on increasing access to evolving services for consumers living in rural and insular areas, and for consumers with low incomes. Additional principles called for increased access to high-speed Internet in the nation's schools, libraries, and rural health care facilities. The FCC established four programs within the Universal Service Fund to implement the statute. The four programs are:Connect America Fund (formally known as High-Cost Support) for rural areas,Lifeline (for low-income consumers), including initiatives to expand phone service for Native Americans Schools and Libraries (E-rate), Rural Health Care,The Universal Service Fund is paid for by contributions from telecommunications carriers, including wireline and wireless companies, and interconnected Voice over Internet Protocol (VoIP) providers, including cable companies that provide voice service, based on an assessment on their interstate and international end-user revenues. The Universal Service Administrative Company, or USAC, administers the four programs and collects monies for the Universal Service Fund under the direction of the FCC. On July 26, 2012, the Commission released a Public Notice seeking comments on a proposed survey of urban rates for fixed voice and fixed broadband residential services. On September 12, 2012, the Commission released a Public Notice seeking comments on the 2013 Modification of Average Schedule high-cost loop support formula proposed by NECA. On November 16, 2012, the Commission released a fifth Order on Reconsideration clarifying certain aspects of the USF/ICC Transformation Order regarding financial reporting obligations and requests for waivers in response to various petitions for reconsideration and/or clarification. On November 19, 2012, the Commission released a Further Notice of Proposed Rulemaking seeking comment on two alternative approaches to advancing broadband objectives in price cap territories, using the remaining 2012 Connect America Phase I funding. On November 23, 2012, the Commission released a public notice seeking comments on proposed revisions to the annual Telecommunications Reporting Worksheet, FCC Forms 499A-Q and their accompanying instructions. On December 13, 2012, the Commission released an Order approving NECA's 2013 proposing modifications to the formula used to calculate interstate USF High-Cost Loop Support for Average Schedule Companies. On December 21, 2012, the Commission released a Report and Order launching the Healthcare Connect Fund to expand health care provider access to broadband and foster state and regional broadband health care networks, and creates a Skilled Nursing Facility Pilot Program. On January 2, 2013, the Commission released a Public Notice announcing the comment cycle regarding modifications to Connect America Phase I Further Notice of Proposed Rulemaking. On January 17, 2013, the Commission released a Public Notice seeking further comment on issues related to the implementation of the Remote Areas Fund. On January 30, 2013, the Commission released a Public Notice announcing the high-cost loop support benchmarks to be used by NECA for 2013. On February 8, 2013, the Commission released a Public Notice seeking to further develop the record on issues relating to Connect America Phase II support for price cap carriers serving areas outside of the contiguous United States. On February 12, 2013, the Commission released a Public Notice seeking updates and corrections to TelcoMaster table for the Connect America Cost Model. On February 26, 2013, the Commission released a Public Notice seeking comments on issues related to the service obligations for support recipients and unsubsidized competitors in Phase II of Connect America. On February 27, 2013, the Commission released a Sixth Order on Reconsideration and Memorandum Opinion and Order addressing several issues related to the benchmarking rule and other changes made to high-cost universal service support for rate-of-return carriers in the USF/ICC Transformation Order. On March 26, 2013, the Commission released a Public Notice announcing updated 2013 high-cost loop support benchmarks, accounting for the changes adopted in the Sixth Order on Reconsideration, and making minor corrections to the input variables. On April 15, 2013, the Commission released a Memorandum Opinion and Order granting limited forbearance to Lifeline-only eligible telecommunications carrier from requirements of the Communications Act and the Commission's rules. On April 22, 2013, the Commission released a Report and Order adopting platform, addressing the design of the network and network engineering for Connect America Cost Model to estimate forward-looking costs of Connect America Phase II deployment. On May 16, 2013, the Commission released a Report and Order announcing the parameters for the Connect America Phase II. On May 22, 2013, the Commission released a Report and Order providing for a second round of Connect America Phase I incremental funding in 2013 to further leverage private investment in rural America and accelerate the availability of broadband to consumers who lack access. On May 23, 2013, the Commission released a Public Notice providing guidance regarding the 2013 Lifeline recertification process. On June 7, 2013, the Commission released a Public Notice announcing the availability of version 3.1.3 of the Connect America Cost Model (CAM). On June 17, 2013, the Commission announced the release of illustrative model outputs from running the Connect America Cost Model version 3.1.3 and of model methodology documentation. On June 25, 2013, the Commission released an Order codifying the Commission's requirement that eligible telecommunications carriers verify a Lifeline subscriber's eligibility for Lifeline service before activating such service. On July 16, 2013, the Commission released an Order on Reconsideration requiring carriers to report updates to planned Phase I deployments and provide a limited waiver of the deadline for carriers to accept second round Phase I support. On July 23, 2013, the Commission released a Notice of Proposed Rulemaking initiating a review and update of the E-rate program to focus on 21st-century broadband needs of schools and libraries. On July 26, 2013, the Commission released an Order adopting several measures to provide greater clarity regarding universal service high-cost support amounts that the rate-of-return carriers will receive in 2014. On August 29, 2013, the Commission released a Public Notice announcing availability of version 3.2 of the CAM (including illustrative results), and seeks comment on certain adjustments to reflect the unique circumstances and operating conditions in the non-contiguous areas of the United States. On October 31, 2013, the Commission released an Order specifying service obligations of price cap carriers that accept Connect America Phase II model-based support through the State-level commitment process, and addressed how to determine what areas are considered as served by an unsubsidized competitor. On December 2, 2013, the Commission released a Public Notice announcing Availability of Version 4.0 of the Connect America Fund Phase II Cost Model.

 
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:
Action Source Description Date
Other  Statutory  Recommended decision  11/08/1996 
Final  Statutory  Federal-State Joint Board R&O released May 8, 1997  05/08/1997 
NPRM  Statutory    03/08/1996 
Timetable:
Action Date FR Cite
Recommended Decision Federal-State Joint Board, Universal Service  11/08/1996  61 FR 63778   
First R&O  05/08/1997  62 FR 32862   
Second R&O  05/08/1997  62 FR 32862   
Order on Recon  07/10/1997  62 FR 40742   
R&O and Second Order on Recon  07/18/1997  62 FR 41294   
Second R&O, and FNPRM  08/15/1997  62 FR 47404   
Third R&O  10/14/1997  62 FR 56118   
Second Order on Recon  11/26/1997  62 FR 65036   
Fourth Order on Recon  12/30/1997  62 FR 2093   
Fifth Order on Recon  06/22/1998  63 FR 43088   
Fifth R&O  10/28/1998  63 FR 63993   
Eighth Order on Recon  11/21/1998    
Second Recommended Decision  11/25/1998  63 FR 67837   
Thirteenth Order on Recon  06/09/1999  64 FR 30917   
FNPRM  06/14/1999  64 FR 31780   
FNPRM  09/30/1999  64 FR 52738   
Fourteenth Order on Recon  11/16/1999  64 FR 62120   
Fifteenth Order on Recon  11/30/1999  64 FR 66778   
Tenth R&O  12/01/1999  64 FR 67372   
Ninth R&O and Eighteenth Order on Recon  12/01/1999  64 FR 67416   
Nineteenth Order on Recon  12/30/1999  64 FR 73427   
Twentieth Order on Recon  05/08/2000  65 FR 26513   
Public Notice  07/18/2000  65 FR 44507   
Twelfth R&O, MO&O and FNPRM  08/04/2000  65 FR 47883   
FNPRM and Order  11/09/2000  65 FR 67322   
FNPRM  01/26/2001  66 FR 7867   
R&O and Order on Recon  03/14/2001  66 FR 16144   
NPRM  05/08/2001  66 FR 28718   
Order  05/22/2001  66 FR 35107   
Fourteenth R&O and FNPRM  05/23/2001  66 FR 30080   
FNPRM and Order  01/25/2002  67 FR 7327   
NPRM  02/15/2002  67 FR 9232   
NPRM and Order  02/15/2002  67 FR 10846   
FNPRM and R&O  02/26/2002  67 FR 11254   
NPRM  04/19/2002  67 FR 34653   
Order and Second FNPRM  12/13/2002  67 FR 79543   
NPRM  02/25/2003  68 FR 12020   
Public Notice  02/26/2003  68 FR 10724   
Second R&O and FNPRM  06/20/2003  68 FR 36961   
Twenty-Fifth Order on Recon, R&O, Order, and FNPRM  07/16/2003  68 FR 41996   
NPRM  07/17/2003  68 FR 42333   
Order  07/24/2003  68 FR 47453   
Order  08/06/2003  68 FR 46500   
Order and Order on Recon  08/19/2003  68 FR 49707   
Order on Remand, MO&O, FNPRM  10/27/2003  68 FR 69641   
R&O, Order on Recon, FNPRM  11/17/2003  68 FR 74492   
R&O, FNPRM  02/26/2004  69 FR 13794   
R&O, FNPRM  04/29/2004    
NPRM  05/14/2004  69 FR 3130   
NPRM  06/08/2004  69 FR 40839   
Order  06/28/2004  69 FR 48232   
Order on Recon & Fourth R&O  07/30/2004  69 FR 55983   
Fifth R&O and Order  08/13/2004  69 FR 55097   
Order  08/26/2004  69 FR 57289   
Second FNPRM  09/16/2004  69 FR 61334   
Order & Order on Recon  01/10/2005  70 FR 10057   
Sixth R&O  03/14/2005  70 FR 19321   
R&O  03/17/2005  70 FR 29960   
MO&O  03/30/2005  70 FR 21779   
NPRM & FNPRM  06/14/2005  70 FR 41658   
Order  10/14/2005  70 FR 65850   
Order  10/27/2005    
NPRM  01/11/2006  71 FR 1721   
Report Number 2747  01/12/2006  71 FR 2042   
Order  02/08/2006  71 FR 6485   
FNPRM  03/15/2006  71 FR 13393   
R&O and NPRM  07/10/2006  71 FR 38781   
Order  01/01/2006  71 FR 6485   
Order  05/16/2006  71 FR 30298   
MO&O and FNPRM  05/16/2006  71 FR 29843   
R&O  06/27/2006  71 FR 38781   
Public Notice  08/11/2006  71 FR 50420   
Order  09/29/2006  71 FR 65517   
Public Notice  03/12/2007  72 FR 36706   
Public Notice  03/13/2007  72 FR 40816   
Public Notice  03/16/2007  72 FR 39421   
Notice of Inquiry  04/16/2007    
NPRM  05/14/2007  72 FR 28936   
Recommended Decision  11/20/2007    
Order  02/14/2008  73 FR 8670   
NPRM  03/04/2008  73 FR 11580   
NPRM  03/04/2008  73 FR 11591   
R&O  05/05/2008  73 FR 11837   
Public Notice  07/02/2008  73 FR 37882   
NPRM  08/19/2008  73 FR 48352   
Notice of Inquiry  10/14/2008  73 FR 60689   
Order on Remand, R&O, FNPRM  11/12/2008  73 FR 66821   
R&O  05/22/2009  74 FR 2395   
Order & NPRM  03/24/2010  75 FR 10199   
R&O and MO&O  04/08/2010  75 FR 17872   
NOI and NPRM  05/13/2010  75 FR 26906   
Order and NPRM  05/28/2010  75 FR 30024   
NPRM  06/09/2010  75 FR 32699   
NPRM  08/09/2010  75 FR 48236   
NPRM  09/21/2010  75 FR 56494   
R&O  12/03/2010  75 FR 75393   
Order  01/27/2011  76 FR 4827   
NPRM  03/02/2011  76 FR 11407   
NPRM  03/02/2011  76 FR 11632   
NPRM  03/23/2011  76 FR 16482   
Order and NPRM  06/27/2011  76 FR 37307   
R&O  12/28/2011  76 FR 81562   
Order  03/09/2012  77 FR 14297   
R&O  03/30/2012  77 FR 19125   
Order  05/23/2012  77 FR 30411   
3rd Order on Recon  05/24/2012  77 FR 30904   
Public Notice  05/31/2012  77 FR 32113   
FNPRM  06/07/2012  77 FR 33896   
Public Notice  07/26/2012  77 FR 43773   
Order  08/30/2012  77 FR 52616   
Public Notice  02/28/2012  77 FR 76345   
Public Notice  08/29/2012  77 FR 52279   
Public Notice  12/12/2012  77 FR 74010   
5th Order on Recon  01/17/2013  78 FR 3837   
Public Notice  02/07/2013  78 FR 9020   
Public Notice  02/21/2013  78 FR 12006   
Public Notice  02/22/2013  78 FR 12269   
Public Notice  03/15/2013  78 FR 16456   
6th Order on Recon and MO&O  03/19/2013  78 FR 16808   
MO&O  05/08/2013  78 FR 26705   
R&O  05/06/2013  78 FR 26269   
R&O  06/03/2013  78 FR 32991   
Public Notice  06/13/2013  78 FR 35632   
R&O  06/26/2013  78 FR 38227   
Order on Recon  08/08/2013  78 FR 48622   
Order  03/01/2013  78 FR 13935   
Public Notice  12/19/2013  78 FR 76789   
Order  02/28/2014  79 FR 11366   
Public Notice  03/11/2014  79 FR 13599   
Public Notice  03/17/2014  79 FR 17070   
Public Notice  04/18/2014  79 FR 21924   
R&O  05/21/2014  79 FR 29111   
Order  05/23/2014  79 FR 33705   
FNPRM  07/09/2014  79 FR 39163   
R&O  07/31/2014  79 FR 44352   
R&O  08/19/2014  79 FR 49160   
Next Action Undetermined  To Be Determined 
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:
Nakesha Woodward
Program Analyst
Federal Communications Commission
Wireline Competition Bureau, 45 L Street NE,
Washington, DC 20554
Phone:202 418-1502
Email: kesha.woodward@fcc.gov