Getting Started

Universal Service Administrative Company

The Universal Service Administrative Company (USAC) is an independent, not-for-profit corporation that was created in 1997 to administer universal service support mechanisms, or programs, and the federal universal service fund (USF). USAC administers the USF under the oversight of the Federal Communications Commission (FCC).

Universal service is the United States government’s policy of ensuring access to a baseline level of telecommunications service throughout the United States. To help make telecommunications affordable for all Americans and fulfill the goals of universal service, USAC collects money from telecommunications carriers making FCC-mandated universal service contributions and distributes it to companies serving eligible beneficiaries. Eligible beneficiaries include low-income consumers, people living in hard-to-serve areas, rural health care providers, schools, and libraries.

Providing universal service furthers the public interest of keeping all Americans connected. Contributors, beneficiaries, USAC, and the federal government share the task of ensuring that universal service money is handled properly from start to finish. Through program administration, auditing, and outreach, USAC works with and for contributors, service providers, and program beneficiaries to make sure that accurate payments go to the right people for the proper uses.

USAC also works to ensure that the process for program participants is streamlined and easy to use. As USAC serves these stakeholders, under the oversight of the FCC, on whose behalf USAC administers the universal service support programs.

Contributors

The contributor group includes telecommunications carriers and Voice over Internet Protocol (VoIP) companies providing service internationally and between states that make universal service contributions.

Service Providers

The service provider group includes telecommunications providers, Internet access providers, providers of internal connections, or other eligible services that participate in a universal service program.

Universal Service Programs

The four universal service programs are designed to make telecommunications accessible and affordable for particular groups.

• High Cost Program: ensures consumers across the country pay rates for telecommunications services that are comparable to those available in urban areas.
• Lifeline Program: ensures low-income consumers can initiate and maintain telecommunications services at affordable rates.
• Rural Health Care Program: ensures that rural health care providers can obtain communications and Internet services at rates comparable to urban providers.
• Schools and Libraries Program: ensures that schools and libraries can obtain telecommunications, telecommunications services, Internet, internal connections, and basic maintenance of internal connections at affordable rates.

USAC’s Role

USAC and its dedicated professional staff are intimately familiar with all administrative aspects of federal universal service program activities. USAC operations include collecting and disbursing funds, ensuring fund integrity, overseeing program accountability, and communicating with stakeholders. As the administrator, USAC operates with a strong commitment to protecting the integrity of the fund.

USAC's functions and responsibilities include:

• Administration of each of the support programs.
• Billing contributors, collecting contributions, and disbursing universal service support.
• Reporting quarterly to the FCC on disbursement of universal service support.