RTC's Business Communicator for Winter 2017

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WhyAmI required toHave a Landline? Universal Service Fund (USF) FAQs
. . .
The United States Congress authorized the FCC to implement the
Universal Service Fund (USF). The USF is mandated by Section
254 of the Telecommunications Act of 1996.
What is the Universal Service Fund?
The USF is a government administered fund, not a government
paid fund, to support the provision of telecommunications ser-
vices in rural and high-cost areas, low income consumers and to
schools, libraries and healthcare facilities nationwide. All telecom-
munications customers contribute to the USF on an equal basis.
How does it work for RTC?
The Universal Service High-Cost program, of which RTC is a part
of, is designed to ensure that consumers in rural, insular, and high­
cost areas have access to telecommunications services at rates that
are affordable and reasonably comparable to those in urban areas.
The program fulfills this universal service goal by allowing eligible
carriers who serve these areas to recover some of their operating
costs from the federal Universal Service Fund. The fund reimburse-
ment is based only on local phone service subscriptions.
What has changed?
The FCC order released on November 18, 2011, established annual
benchmarks for how much must be charged for local service by USF
high cost program participants to remain eligible for the program.
Why don’t you just opt-out of the USF program?
If we gave up the support funds we receive, local rates we would
need to charge would rise significantly higher than the mandated
minimums issued in the FCC order. Our cooperative serves over
6,000 square miles, a vast majority of which is rural, high-cost service
areas. The fund was created to ensure access to telecommunication
services at rates comparable to urban areas, but that would not be
feasible without the funding we have received through this program.
Will I continue to be required to subscribe to a line of local
phone service to receive broadband Internet and Cable TV
services?
Yes. Since the FCC continues to base USF reimbursement on local
phone line subscriptions, we must keep this requirement in place.
If we did not require a
phone line subscrip-
tion, the cooperative
would not receive
USF funding and
the rate for broad-
band Internet and
cable TV service
would have to be
adjusted accord-
ingly, which would result in rates at least four times that of the
current monthly service. We do anticipate changes to this require-
ment in the future, but it will need to remain in place as long as
USF is based only on local phone networks.
What has RTC done with the USF funding it has received?
Exactly what the program was intended for. Maintaining our exist-
ing telecommunications network to provide reliable services and
upgrades to offer advanced communication services. We continue
to upgrade our network so that all customers, no matter how rural,
can receive broadband Internet services.
Who can I call to voice my concerns?
You may contact the Federal Communications Commission, your
US Senators or Congressman. Please share your experiences with
our cooperative providing you access to advanced communication
services and encourage them to seek Universal Service Fund reform
that is less burdensome to rural Americans and rural communica-
tion service providers.
FEDERAL COMMUNICATIONS COMMISSION
445 12th Street SW
Washington, DC 20554
1-888-225-5322
UNITED STATES SENATORS
Senator Heidi Heitkamp
110 Hart Senate Office Building
Washington, DC 20510
202-224-2043
Senator John Hoeven
338 Russell Senate Office Building
Washington, DC 20510
202-224-2551
UNITED STATES CONGRESS
Congressman Kevin Cramer
1032 Longworth House
Office Building
Washington, DC 20515
202-225-2611