November 17, 2005
Universal Service Fund
Lawmakers in the US contend that the Universal Service Fund can be utilized for financing broadband access in rural areas. The USF contribution fund was originally created to foster the penetration of telephone service in rural America.
Local and long distance companies, paging companies, wireless providers, and payphone firms have been contributing to the USF since 1996. However, neither cable companies nor VoIP providers contribute to the USF. The payments to the USF are directed to the subsidizing telephone rates in high cost areas.
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