Reforming the Universal Service Fund

Starting in the mid-1980s, the FCC established various programs, collectively called the Universal Service Fund (USF), to increase access to communication services in the home at “just, reasonable and affordable rates for all consumers.” Universal service consists of three main components:

  • Lifeline and Link-Up help low-income consumers (including those with disabilities and senior citizens) afford telephone service at home.
  • Rural support funds carriers in areas with lower population densities make the natural cost of service too high.
  • USF funds also support telecommunications service (including Internet) to schools and libraries, known widely as the e-rate (which was established in 1996).

Telecommunications providers (such as telephone, cable and cell phone companies) must contribute to the USF. Ultimately, most providers add a small Universal Connectivity Fee to each customer’s bill.

USF has played a role in bringing U.S. telephone adoption rates to 95.6 percent of Americans. The fund is currently at 8.7 billion dollars as of 2010.

https://www.nhmc.org/wp-content/uploads/2010/06/MADCo-USF-Two-Pager.pdf    ]]>

National Hispanic Media Coalition (NHMC) is a woman-led 501(c)(3) non-profit, nonpartisan, civil and human rights organization that was founded to eliminate hate, discrimination, and racism toward Latino and marginalized communities.

We educate and increase Latino visibility from our policy work in Washington, D.C., to our media advocacy work in Hollywood, where we connect, collaborate, and create with talent within the entertainment industry.

We lead the work to eliminate online hate and disinformation across media platforms. We advocate for the Affordable Connectivity Program, Lifeline Program, Net Neutrality protections, and closing the digital divide for Latino and other marginalized communities. NHMC works in partnership with other social justice organizations to safeguard democracy in the United States of America.

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