Universal Service Administrative Company
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The Universal Service Administrative Company (USAC) is an independent American nonprofit corporation designated as the administrator of the federal Universal Service Fund (USF) by the Federal Communications Commission. USAC is a subsidiary of the National Exchange Carrier Association. The USAC administers USF programs by providing subsidies for high cost telephone companies serving rural areas, low-income consumers, rural health care providers, and schools and libraries.:[1]
Association Between USAC and FCC[edit]
The FCC oversees USAC's management of the Universal Service Fund, and can make changes to the administration of the funds as needed. USAC can recommend changes to the way they manage the funds, and the FCC may or may not consider the recommendations.[1].
The Universal Service Fund Programs[edit]
The four programs USAC administers are:
- Connect America Fund (formally known as High-Cost Support) for rural areas
- Lifeline Program (for low-income consumers), including initiatives to expand phone service for residents of Tribal lands
- Schools and Libraries (E-Rate Program)
- Rural Health Care Program
These funds were created by the Telecommunications Act of 1996.[2]
Collection and Distribution of Funds[edit]
USAC collects the monies that make up the Universal Service Fund from all telecommunications companies that provide telephone service, interstate or international. It also collects payments from companies that provide Voice over Internet Protocol (VOIP) service. Payment amounts are determined by projected quarterly earnings. The telecom companies can either cover the cost of the contribution entirely, or pass some of the cost over to their customers by adding a Universal Service fee to monthly bills.[1]
Monies are distributed from the Universal Service Fund by USAC, to approved applicants for the different funds. These are the 2020 disbursement totals for the four universal service programs:[3]
| 2020 Disbursements | $8.3 billion |
|---|---|
| E-Rate | $2 billion |
| High Cost | $5 billion |
| Lifeline | $850 million |
| Rural Health Care | $297 million |
USAC's Role in Eliminating Fraud, Waste and Abuse in the Lifeline Program[edit]
National Lifeline Accountability Database[edit]
The first major effort to eliminate waste, fraud and abuse in the Lifeline Program was the creation of the National Lifeline Accountability Database (NLAD), established by the Lifeline Reform Order of 2012.[4]. USAC built NLAD and began operating it on February 13, 2014 [5]. The purpose of NLAD was to help eliminate duplicate subscribers across telephone companies.
A 2018 performance audit of NLAD determined that USAC had fully implemented NLAD as required by the Lifeline Reform Order, and that it was functioning as designed.[6]
Within the first two months, NLAD had found $169 million in savings by eliminating duplicates and preventing new duplicate records.[7]
National Verifier[edit]
On March 31, 2016, the FCC's Lifeline Modernization Order[8] ordered USAC to create a National Lifeline Eligibility Verifier "National Verifier", that matches data about Lifeline applicants and subscribers with other data sources to verify eligibility.[9]
The National Verifier became fully operational in all 56 states and territories with the final launch group, in December 2019.[10]
Response to COVID-19 Pandemic[edit]
The FCC created four emergency, or "rescue" funds, during the COVID-19 pandemic. The FCC engaged USAC to administer these funds.[11]
- The COVID-19 Telehealth Program was created by the FCC in Report and Order (FCC 20-44), adopted on March 31, 2020. This program is intended to reduce barriers to telehealth services for healthcare providers and patients across the country, in response to the pandemic.[12]
- On February 25, 2021, the FCC adopted a Report and Order (FCC 21-29) creating the Emergency Broadband Benefit Program (EBBP) made available discounts off the cost of broadband services and connected devices to those low-income households that were eligible. Subsidies for computers were also available.[13]
- The American Rescue Plan Act of 2021 included $7.171 billion allocated to the Emergency Connectivity Fund (ECF) Program, which is to be distributed to eligible schools and libraries, for the purchase of eligible equipment and/or advanced telecommunications and information services. On May 10, 2021, the FCC adopted a Report and Order (FCC 21-58) establishing the Emergency Connectivity Fund (ECF) Program to distribute the funding.[14]
- The Affordable Connectivity Program (ACP) replaced the EBBP. The Wireline Competition Bureau of the FCC released the Report and Order and Further Notice of Proposed Rulemaking (FCC 22-2) on January 21, 2022, which adopts the final rules for the ACP. The ACP provides discounts on internet service and/or a one-time discount on a device, directly to consumers.[15]
See also[edit]
References[edit]
- ↑ 1.0 1.1 1.2 CBS Miami. "The Role Of USAC: Managing The Lifeline Program". CBSNews.com. Retrieved 5 October 2022.
- ↑ Federal Communications Commission. "Universal Service". FCC.gov. Retrieved 5 October 2022.
- ↑ Universal Service Administrative Company. "General FAQs". Universal Service Administrative Co. Retrieved 6 October 2022.
- ↑ Federal Communications Commission. "REPORT AND ORDER AND FURTHER NOTICE OF PROPOSED RULEMAKING" (PDF). Federal Communications Commission. Retrieved 6 October 2022.
- ↑ Bennet L. Ross. "Queries to the National Lifeline Accountability Database to Begin Soon". Wiley.law. Retrieved 5 October 2022.
- ↑ "Redacted Universal Service Administrative Company's (USAC) implementation of the Universal Service Fund (USF) Lifeline Program's National Lifeline Accountability Database (NLAD)" (PDF). Oversight.gov. FCC Office of Inspector General. March 26, 2018. Retrieved 6 October 2022.
- ↑ In Compliance News. "Lifeline Accountability Database Launched by FCC". In Compliance News. Retrieved 5 October 2022.
- ↑ FCC. "THIRD REPORT AND ORDER, FURTHER REPORT AND ORDER, AND ORDER ON RECONSIDERATION" (PDF). fcc.gov. Retrieved 5 October 2022.
- ↑ John B. Horrigan, PhD (February 2022). "REIMAGINING LIFELINE: Universal Service, Affordability, and Connectivity" (PDF). Benton.org. Benton Institute for Broadband & Society.
- ↑ Benton Institute for Broadband & Society (February 3, 2021). "National Verifier Year in Review". Benton Institute for Broadband & Society. Retrieved 6 October 2022.
- ↑ Universal Service Administrative Co. "USAC's COVID-19 Response". USAC.org. Universal Service Administrative Co. Retrieved 6 October 2022.
- ↑ Squire Patton Boggs. "FCC Establishes US$200 Million COVID-19 Telehealth Program; Outlines Application Process" (PDF). squirepattonboggs.com. Retrieved 6 October 2022.
- ↑ "PALLONE AND DOYLE ON LAUNCH OF THE EMERGENCY BROADBAND BENEFIT PROGRAM". energycommerce.house.gov. May 11, 2021. Retrieved 6 October 2022.
- ↑ Teralyn Whipple (July 27, 2022). "FCC Commits $77M More from Emergency Connectivity Fund". Broadbandbreakfast.com. Retrieved 6 October 2022.
- ↑ Roslyn Layton (September 30, 2022). "Policy No-Brainer: Extend The Affordable Connectivity Program For 5 Years With $30 Billion". Forbes.com. Retrieved 6 October 2022.
External links[edit]
- USAC - Official website
- High Cost Program - Official website
- Low Income Program - Official website
- Rural Health Care Program - Official website
- Schools & Libraries Program - Official website
- Federal Communications Commission - Official website
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