Universal Service Fund - Contributions

Contributions

In the past, only long distance companies made contributions to support the federal Universal Service Fund. In 1996, the United States Congress passed the Telecommunications Act that expanded the types of companies contributing to the Universal Service Fund.

Currently, all telecommunications companies that provide service between states, including long distance companies, local telephone companies, wireless telephone companies, paging companies, and payphone providers, are required to contribute to the federal Universal Service Fund. Carriers providing international services also must contribute to the Universal Service Fund. Since an FCC order released in June 2006, providers of VoIP services are obligated to contribute as well.

Telecommunications companies pay contributions into one central fund. The USAC makes payments from this central fund to support the four Universal Service Fund programs. The FCC does not require companies to charge their customers for these contributions - this funding decision is left up to the individual companies.