FCC FCC Universal Service Fund Programs 1 — Questions and Answers
Question 1: Which federal legislation established the modern Universal Service Fund (USF) framework?
- Communications Act of 1934
- Telecommunications Act of 1996 (Correct answer)
- Digital Millennium Copyright Act of 1998
- Broadband Data Improvement Act of 2008
Correct answer: Telecommunications Act of 1996
Section 254 of the Telecommunications Act of 1996 codified and modernized the principles of universal service, creating the framework for today's USF programs.
Question 2: Which organization administers the Universal Service Fund programs under FCC oversight?
- Federal Trade Commission (FTC)
- National Telecommunications and Information Administration (NTIA)
- Universal Service Administrative Company (USAC) (Correct answer)
- Federal Communications Bar Association (FCBA)
Correct answer: Universal Service Administrative Company (USAC)
USAC is a non-profit organization designated by the FCC to administer the four USF programs: High Cost, Lifeline, E-Rate, and Rural Health Care.
Question 3: Which of the following is NOT one of the four core Universal Service Fund programs?
- E-Rate (Schools & Libraries)
- Lifeline
- Rural Health Care
- Broadband Expansion Initiative (Correct answer)
Correct answer: Broadband Expansion Initiative
The four USF programs are High Cost, Lifeline, E-Rate (Schools and Libraries), and Rural Health Care; there is no USF program called the Broadband Expansion Initiative.
Question 4: What is the primary purpose of the E-Rate program?
- Provide monthly discounts to low-income consumers for phone service
- Fund broadband deployment in unserved rural areas
- Provide discounts on telecommunications and internet services to schools and libraries (Correct answer)
- Support telecommunications infrastructure in high-cost areas
Correct answer: Provide discounts on telecommunications and internet services to schools and libraries
E-Rate provides eligible schools and libraries with discounts of 20–90% on telecommunications, internet access, and internal connections.
Question 5: What is the maximum discount percentage available to eligible applicants under the E-Rate program?
- 50%
- 75%
- 90% (Correct answer)
- 100%
Correct answer: 90%
E-Rate discounts range from 20% to 90%, with the highest discounts going to the poorest schools and libraries in the most rural areas.
Question 6: The Lifeline program provides monthly service discounts to which group of consumers?
- Senior citizens over the age of 65
- Veterans and active military families
- Low-income consumers who meet income or program eligibility criteria (Correct answer)
- Rural residents in areas lacking broadband infrastructure
Correct answer: Low-income consumers who meet income or program eligibility criteria
Lifeline is an FCC program that lowers the monthly cost of phone or broadband service for eligible low-income subscribers.
Question 7: Who is required to contribute to the Universal Service Fund?
- Only traditional wireline long-distance carriers
- Only wireless telecommunications carriers
- Providers of interstate and international telecommunications services (Correct answer)
- All internet service providers regardless of service classification
Correct answer: Providers of interstate and international telecommunications services
The FCC requires providers of interstate and international telecommunications services to contribute a percentage of their end-user revenues to the USF.
FCC FCC Universal Service Fund Programs 1
Which federal legislation established the modern Universal Service Fund (USF) framework?