Lucrative long distance networks were required to pay a metered access charge to the local network. This meant long distance users paid more than the actual cost of long distance service to subsidize the high cost local networks. Again the actual amount of this subsidy was uncalculated. With multiple companies competing in various services the old system of regulation was inadequate. The USF compensated telecommunications companies that provided service to both low income communities and rural areas where the cost of providing service was high.
Quality services are to be available at just, reasonable, and affordable rates.
Access to advanced telecommunications and information services should be provided in all regions of the nation. All providers of telecommunications services should make an equitable and nondiscriminatory contribution to preserving universal service. Universal service should be preserved through specific, predictable, and sufficient Federal and State mechanisms. Schools, health care providers, and libraries should have access to advanced telecommunications services at a discount. Consistent with the Act, the FCC and the Joint Board can establish other principles as they deem necessary to protect the public interest.