**GAO-08-633**                      Published: Jun 13, 2008. Publicly Released: Jul 10, 2008.                  

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## Highlights

In the Telecommunications Act of 1996 (1996 Act), the Congress said that consumers in "rural, insular, and high-cost areas" should have access to services and rates that are "reasonably comparable" to those in urban areas. To implement the 1996 Act, the Federal Communications Commission (FCC) modified and expanded the high-cost program. The program provides funding to some telecommunications carriers, facilitating lower telephone rates in rural areas. GAO was asked to review (1) the effect that the program structure has on the level of support and types of services in rural areas, (2) the extent to which FCC has developed performance goals and measures for the program, and (3) the extent to which FCC has implemented internal control mechanisms. GAO reviewed relevant documents; interviewed federal and state officials, industry participants, and experts; conducted 11 state site visits; and conducted a survey of state regulators, available online at GAO-08-662SP.

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## Topics

Auditing and Financial Management

BroadbandCompetitionCost analysisCost controlFederal aid to localitiesFederal regulationsstate relationsInternal controlsNoncompliancePerformance measuresPolicy evaluationProgram managementRisk assessmentTelecommunication policyTelecommunicationsTelecommunications industryTelephonesUniversal serviceProgram costsProgram goals or objectives