| Publisher | Congressional Budget Office | ||
|---|---|---|---|
| Format | 500.0KB PDF | Date added | 01 Mar 2005 |
| Topics | Financial Management | ||
| Downloads | 19 | ||
Under the Telecommunications Act of 1996, the Universal Service Fund (USF) supports both traditional telephone service and advanced telecommunications services, particularly in rural and other remote regions that otherwise might not be served by telecommunications companies. Since the enactment of the 1996 law, universal access has been financed by a federal tax on interstate and international long-distance calls. However, a recent decline in revenues generated by long distance service has raised concern about the desirability of that financing mechanism. This paper examines recent trends in the financing sources that underlie universal service and analyzes options for change.
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