High Cost
About High Cost:
- Overview of the Program
- Overview of the Process
- Site Visits
- Training Events
- Filing Appeals
- Red Light Status (FCC site)
- Requesting Confidential Information
- Understanding Audits
- Understanding Disaggregation
- USAC FCC Filings
High Cost Tools:
Overview of the Program
What is High Cost Program Support?
The High Cost Program of the Universal Service Fund, which is administered by the Universal Service Administrative Company (USAC), ensures that consumers in all regions of the nation have access to and pay rates for telecommunications services that are reasonably comparable to those services provided and rates paid in urban areas.
Without High Cost support, residents of some areas of the country would have to pay significantly more for telephone services than those living in other areas because of factors such as dense terrain, low populations, or the high fixed costs of building a telecom network.
USAC is responsible for data collection and maintenance, support calculation, and disbursement for the five components of High Cost Program support that provides over $4 billion per year to telecommunications carriers throughout all states and U.S. territories. Currently, over 1,700 eligible telecommunications carriers receive High Cost support.
The primary participants in the High Cost Program are rural and non-rural incumbent local exchange carriers and competitors that serve customer lines in the service areas of incumbent carriers. Other key stakeholders include state regulators, telecom consultants, legislators, and federal agencies.
In order to participate in the High Cost Program, a wireline or wireless telephone company must be an eligible telecommunications carrier (ETC). A telephone company can become an ETC by designation of its state utility regulator, or in some cases, the Federal Communications Commission.
ETC-designated carriers have ongoing requirements, usually on a quarterly basis, to fulfill such as submitting certifications for use of High Cost support, updating line count information, and for incumbent local exchange carriers, filing certain cost and revenue information in order to receive proper support.
