This FCC imposed USF fee is a charge collected by telecommunications carriers for federal and state funds that support the provision of affordable communications services to rural, isolated, and high-cost regions of the country; low-income residential consumers; schools, libraries, and rural health care. All communications companies (including local, long distance, cellular, and paging providers) contribute to the Federal Universal Service Fund.
The FCC created this charge in 1998 as part of its overhaul of telephone fees. Telecommunications carriers pay into the fund based on their interstate revenues and are permitted to recover those costs from customers. The fund is used to keep rates affordable for low-income customers and those who live in high-cost areas. It also supports telecommunications services for libraries, schools and rural health care providers.