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Do All Local Telephone Companies Receive Universal Service Support?

Answer»

No, all local companies do not qualify for this SUPPORT. While most telecom providers CONTRIBUTE to universal service, companies that serve large, urban markets are not likely to qualify for support from the federal Universal Service Fund. Companies that serve large cities such as Chicago, for example, and other urban areas USUALLY do not qualify for universal service support. This, through their SLC and FUCHS payments, customers of the large urban-based companies help KEEP local rates "comparable" and "affordable" for those served by community based providers and other rural companies. This mutual social benefit is the very objective that universal service was designed to achieve.

No, all local companies do not qualify for this support. While most telecom providers contribute to universal service, companies that serve large, urban markets are not likely to qualify for support from the federal Universal Service Fund. Companies that serve large cities such as Chicago, for example, and other urban areas usually do not qualify for universal service support. This, through their SLC and FUCHS payments, customers of the large urban-based companies help keep local rates "comparable" and "affordable" for those served by community based providers and other rural companies. This mutual social benefit is the very objective that universal service was designed to achieve.



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