1999 Annual Report to Congress and the FCC

Bringing Worlds Together Through Communications Technology

Who can ignore the power and importance of communication? Communication is the basis for commerce, friendship, learning, and understanding. It is the link between cultures and nations. The USAC Board of Directors and staff are proud to play a part in providing everyone in the United States with access to the modern tools of communication at reasonable rates, regardless of geographic location or economic status. As the administrator of the federal universal service support mechanisms, our mission is to help connect Americans to each other and to the world through the use of the Internet and telecommunications services that now span the globe.

Since we began operations in September 1997, USAC has achieved many goals, including: implementing significant improvements in the High Cost and Low Income Programs, establishing and improving a program to promote and advance telehealth services to rural areas, establishing a program to connect schools and libraries to the wealth of knowledge on the Internet and intranets, and completing a merger with the Rural Health Care and Schools and Libraries Corporations. In achieving these objectives, USAC has kept administrative costs low as compared to other nonprofit organizations and government programs (less than 1.2% of the Universal Service Fund), while ensuring that all program rules are rigorously enforced. In these two short years, rates for services in rural areas have remained comparable to the rates charged in urban areas; all fifty states have programs that provide assistance to low-income customers; more rural health care providers are using telemedicine to serve rural customers; and half of the nation’s classrooms and libraries have access to modern telecommunications networks. Working with the FCC and our stakeholders, we have helped take universal service from a vision to reality.

We have accomplished much in the last two years and we have ambitious goals for the future. We will work to continue to reach every citizen, rural health care provider, school, and library. We will implement major changes in the High Cost and Rural Health Care Programs in 2000. We will also review the other programs and identify opportunities to improve internal controls, streamline processes, and implement operational efficiencies. As a means to ensure that we provide the best quality service at the lowest cost, we will subject all of our contracts to a competitive bidding process. We will continue to adhere to the mission and scope of the universal service support mechanisms as defined by the FCC and Congress by complying with FCC rules, preventing waste, fraud and abuse, streamlining operations wherever possible, and limiting our role to administrative issues.

Without question, the new millennium will be an era of ever-increasing opportunities to use technology in every aspect of our lives. We are pleased to help provide access to telecommunications services so that all citizens can have an opportunity to benefit from those technologies. We would like to thank the FCC and Congress for supporting this valuable investment in our nation’s future, and for providing USAC with the opportunity to help accomplish the universal service mission.

Sincerely,

Cheryl L. Parrino
Chief Executive Officer, USAC

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