The FCC's universal service rules (abstract)
Authors: Lewis Patricia Figliola 
Published: November 2005

The Telecommunications Act of 1996 is considered landmark
legislation, especially in the area of universal service. However,
the FCC performed even more groundbreaking activity. The FCC was
given wide latitude by the Act to interpret the universal service
provisions of the Act either narrowly or broadly; the FCC chose the
latter. The FCC's interpretation of the Act will have a significant
impact on the level of technology implementation and use in
American classrooms and libraries.

In March 1996, the FCC issued a Notice of Proposed Rulemaking
(NPRM) on Universal Service. The NPRM also established a
Federal-State Joint Board composed of three FCC Commissioners (the
Chairman and two commissioners), four state public service
commission representatives nominated by the National Association of
Regulatory Utility Commissioners, and one utility consumer advocate
nominated by the National Association of State Utility Consumer
Advocates. On November 8, 1996, the Joint Board released its
Recommended Decision and the FCC adopted its rules based on that
recommendation in May 1997.

The FCC ruled that all eligible schools and libraties should
receive discounts of between 20 and 90 percent (depending on need)
on all telecommunications services, Internet access, and internal
connections, subject to a $2.25 billion annual cap. In addition,
any funds not disbursed in a given year may be carried forward and
disbursed in subsequent years without regard to the cap. This
provision, according to the FCC, will provide schools and libraries
with the maximum flexibility to purchase the services that will
meet their communications needs most effectively. In a separate
section of the rules, the FCC defined "core services" as:

&bull; Voice-grade access to the public switched network,
with the ability to place and receive calls

&bull; Dual Tone Multifrequency signaling (touch-tone) or
its functional equivalent

&bull; Single-party service

&bull; Access to emergency services

&bull; Access to operator services

&bull; Access to interexchange services

&bull; Access to directory assistance.

&bull; Support for toll limitation services (includes both
toll blocking and toll control) for low-income consumers.

However, as stated in the Act, the FCC was given the latitude to
include additional services for schools and libraries. It could
have chosen to provide schools and libraries with discounts on (1)
only core telecommunications services; (2) core services plus some
complement of additional services; or (3) all telecommunications
services (including wireless). The FCC adopted the third option,
that discounts be provided on all telecommunications services. It
stated that this guideline would provide schools and libraries the
maximum flexibility to purchase whatever package of
telecommunications services they believe would meet their
telecommunications service needs most effectively and
efficiently.

<i>Current Status:</i> The FCC ruled that it will
permit schools to begin using discounted services on January 1,
1998. The presentation will discuss the current status of this
legislation.