I 
111TH CONGRESS 
2D SESSION 
H. R. 5828 
To reform the universal service provisions of the Communications Act of 
1934, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 22, 2010 
Mr. BOUCHER (for himself and Mr. TERRY) introduced the following bill; 
which was referred to the Committee on Energy and Commerce 
A BILL 
To reform the universal service provisions of the 
Communications Act of 1934, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Universal Service Re-
form Act of 2010’’. 
SEC. 2. DEFINITIONS. 
(a) IN GENERAL.—Section 3(a) of the Communica-
tions Act of 1934 (47 U.S.C. 153(a)) is amended— 
(1) by adding the following new paragraphs: 
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‘‘(53) COMMUNICATIONS SERVICE PROVIDER.— 
The term ‘communications service provider’ means 
any entity that— 
‘‘(A) contributes to or receives universal 
service support for the most recent calendar 
quarter ending before the date of enactment of 
the Universal Service Reform Act of 2010; 
‘‘(B) uses telephone numbers or Internet 
protocol addresses, or their functional equiva-
lents or successors, to offer a service or a capa-
bility— 
‘‘(i) that provides or enables real-time 
2-way voice communications; and 
‘‘(ii) in which the voice component is 
the primary function; or 
‘‘(C) offers directly to the public, or to 
such classes of users as to be effectively avail-
able directly to the public, a physical trans-
mission facility, whether circuit-switched, pack-
et-switched, a leased line, or using radio fre-
quency transmissions (regardless of the form, 
protocol, or statutory classification of the serv-
ice) that allows an end user to obtain access 
from a particular end user location to a net-
work that permits the end user to engage in 
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electronic 
communications 
(including 
tele-
communications) with the public. 
‘‘(54) HIGH-COST SUPPORT.—The term ‘high- 
cost support’ means high cost loop support, high 
cost model support, local switching support, inter-
state access support, and interstate common line 
support, as such forms of support are described in 
part 54 of title 47, Code of Federal Regulations, re-
spectively, as in effect on the date of enactment of 
the Universal Service Reform Act of 2010, or any 
other support or revenue recovery mechanism estab-
lished by the Commission as part of the high cost 
fund of the universal service fund pursuant to sec-
tion 254 or the Universal Service Reform Act of 
2010. 
‘‘(55) HIGH-SPEED BROADBAND SERVICE.— 
‘‘(A) DEFINITION.—The term ‘high-speed 
broadband service’ means a 2-way network that 
uses Internet protocol (and the associated capa-
bilities and functionalities, services, and appli-
cations provided over an Internet protocol plat-
form or for which an Internet protocol capa-
bility is an integral component) and services, fa-
cilities, equipment, or applications that enable 
an end-user to receive communications in Inter-
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net protocol format, regardless of whether the 
communications are voice, data, video, or any 
other form, at or exceeding the minimum data 
rate requirement established by the Commission 
under section 254(q). 
‘‘(B) INTERNET PROTOCOL.—In subpara-
graph (A), the term ‘Internet protocol’ means 
the Transmission Control Protocol/Internet 
Protocol or any predecessor or successor proto-
cols to such protocol. 
‘‘(56) MOBILE
WIRELESS
COMMUNICATIONS 
SERVICE.—The term ‘mobile wireless communica-
tions service’ means a commercial mobile service (as 
defined in section 332(d)), except that such term 
shall only apply to such service as it relates to 2-way 
communications. 
‘‘(57) MOBILE
WIRELESS
COMMUNICATIONS 
SERVICE
PROVIDER.—The term ‘mobile wireless 
communications service provider’ means a provider 
of a mobile wireless communications service.’’; and 
(2) by reordering paragraphs (1) through (52) 
of such section and the additional paragraphs added 
by paragraph (1) of this section in alphabetical 
order based on the headings of such paragraphs and 
renumbering such paragraphs as so reordered. 
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(b) RULE OF CONSTRUCTION.—Terms used in this 
Act shall have the meanings set forth in the Communica-
tions Act of 1934 (47 U.S.C. 151 et seq.) unless otherwise 
specified. 
TITLE I—UNIVERSAL SERVICE 
REFORM 
SEC. 101. UNIVERSAL SERVICE REFORM PROCEDURES AND 
PRINCIPLES. 
Subsections (a), (b), and (c) of section 254 of the 
Communications Act of 1934 (47 U.S.C. 254) are amend-
ed to read as follows: 
‘‘(a) PROCEDURES TO REFORM UNIVERSAL SERV-
ICE.— 
‘‘(1) FEDERAL-STATE
JOINT
BOARD
ON
UNI-
VERSAL SERVICE.— 
‘‘(A) PROCEEDING REQUIRED.—Within 1 
month after the date of enactment of the Uni-
versal Service Reform Act of 2010, the Com-
mission shall institute and refer to the Federal- 
State Joint Board under section 410(c) a pro-
ceeding to recommend changes to any of its 
regulations in order to implement section 
214(e) and this section (as amended by the 
Universal Service Reform Act of 2010), includ-
ing the definition of the services that are sup-
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ported by Federal universal service support 
mechanisms and a specific timetable for the 
completion of such recommendations. 
‘‘(B) ADDITIONAL MEMBER.—In addition 
to the members of the Joint Board required 
under section 410(c), 1 member of such Joint 
Board shall be a State-appointed utility con-
sumer advocate nominated by a national organi-
zation of State utility consumer advocates. 
‘‘(C) DEADLINE FOR JOINT BOARD.—The 
Joint Board shall, after notice and opportunity 
for public comment, make its recommendations 
to the Commission within 9 months after the 
date of enactment of the Universal Service Re-
form Act of 2010. 
‘‘(2) COMMISSION ACTION.— 
‘‘(A) DEADLINE
FOR
COMMISSION.—The 
Commission shall initiate a proceeding to con-
sider the recommendations from the Joint 
Board required by paragraph (1)(C) and shall 
complete such proceeding within 18 months 
after the date of enactment of the Universal 
Service Reform Act of 2010. 
‘‘(B) REQUIREMENT.—The rules estab-
lished by such proceeding shall include a defini-
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tion of the services that are supported by Fed-
eral universal service support mechanisms and 
a specific timetable for implementation. 
‘‘(b) UNIVERSAL SERVICE PRINCIPLES.—The Joint 
Board and the Commission shall base policies for the pres-
ervation and advancement of universal service on the fol-
lowing principles: 
‘‘(1) QUALITY
AND
RATES.—Quality services 
should be available at just, reasonable, and afford-
able rates. 
‘‘(2) ACCESS TO ADVANCED SERVICES.—Access 
to advanced telecommunications and information 
services should be provided in all regions of the Na-
tion. 
‘‘(3) ACCESS
IN
RURAL, INSULAR, OR
HIGH 
COST AREAS.—Consumers in all regions of the Na-
tion, including low-income consumers and those in 
rural, insular, or high cost areas, should have access 
to the services the Commission determines to be uni-
versal services in accordance with subsection (c), in-
cluding interexchange services and advanced tele-
communications and information services, that are 
reasonably comparable to those services provided in 
urban areas and that are available at rates that are 
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reasonably comparable to rates charged for similar 
services in urban areas. 
‘‘(4) COMPARABLE
TREATMENT
OF
COMMU-
NICATIONS SERVICE PROVIDERS.— 
‘‘(A) 
EQUITABLE
AND
NONDISCRIM-
INATORY CONTRIBUTIONS.—All communications 
service providers should make equitable and 
nondiscriminatory contributions to the preserva-
tion and advancement of universal service. 
‘‘(B) COMPETITIVE NEUTRALITY.—Federal 
and State mechanisms to preserve and advance 
universal service should be competitively neutral 
such that those mechanisms neither unfairly ad-
vantage nor disadvantage one communications 
service provider over another and neither un-
fairly favor nor disfavor one technology over an-
other. 
‘‘(5) EXPLICIT, SPECIFIC, AND
PREDICTABLE 
SUPPORT MECHANISMS.—There should be explicit, 
specific, predictable, and sufficient Federal and 
State mechanisms to preserve and advance universal 
service. 
‘‘(6) ACCESS
TO
ADVANCED
TELECOMMUNI-
CATIONS
SERVICES
FOR
SCHOOLS, HEALTH
CARE, 
AND LIBRARIES.—Elementary and secondary schools 
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and classrooms, health care providers, and libraries 
should have access to advanced telecommunications 
services as described in subsection (h). 
‘‘(7) ADDITIONAL
PRINCIPLES.—Such other 
principles as the Joint Board and the Commission 
determine are necessary and appropriate for the pro-
tection of the public interest, convenience, and ne-
cessity and are consistent with this Act. 
‘‘(c) DEFINITION.— 
‘‘(1) IN GENERAL.—Universal service includes 
the services defined on the day before the date of en-
actment of the Universal Service Reform Act of 
2010 as universal services, as modified by the Com-
mission as necessary to implement the provisions of 
such Act, high-speed broadband service, and an 
evolving level of telecommunications and information 
services that the Commission shall establish periodi-
cally under this section, taking into account ad-
vances in telecommunications and information tech-
nologies and services. 
‘‘(2) ALTERATIONS AND MODIFICATIONS.—The 
Joint Board shall consider whether to recommend to 
the Commission modifications in the definition of 
the services that are supported by Federal universal 
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service support mechanisms not less than once every 
5 years. 
‘‘(3) CONSIDERATIONS.—The Joint Board in 
recommending, and the Commission in establishing, 
the definition of the services that are supported by 
Federal universal service support mechanisms shall 
consider the extent to which such services— 
‘‘(A) are essential to education, public 
health, or public safety; 
‘‘(B) have, through the operation of mar-
ket choices by customers, been subscribed to by 
a substantial majority of residential customers; 
‘‘(C) are being deployed in public tele-
communications networks by communications 
service providers; and 
‘‘(D) are consistent with the public inter-
est, convenience, and necessity. 
‘‘(4) SPECIAL
SERVICES.—In addition to the 
services included in the definition of universal serv-
ice under paragraph (1), the Commission may des-
ignate additional services for such support mecha-
nisms for schools, libraries, and health care pro-
viders for the purposes of subsection (h). 
‘‘(5) HIGH-SPEED BROADBAND SERVICE.—The 
definition of universal service shall not be construed 
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to exclude eligible communications service providers 
from using universal service funding for the provi-
sion, maintenance, and upgrading of high-speed 
broadband service.’’. 
SEC. 102. UNIVERSAL SERVICE SUPPORT CONTRIBUTIONS. 
(a) IN GENERAL.—Section 254(d) of the Commu-
nications Act of 1934 (47 U.S.C. 254(d)) is amended to 
read as follows: 
‘‘(d) UNIVERSAL
SERVICE
SUPPORT
CONTRIBU-
TIONS.— 
‘‘(1) CALCULATING UNIVERSAL SERVICE SUP-
PORT CONTRIBUTIONS.— 
‘‘(A) IN GENERAL.— 
‘‘(i) EQUITABLE.—To preserve and 
advance universal service in accordance 
with the principles in subsection (b), the 
Commission shall assess contributions to 
universal service support mechanisms from 
communications service providers in a 
manner that is equitable, competitively 
neutral, nondiscriminatory, and ensures 
that communications service providers are 
subject to similar obligations. 
‘‘(ii) METHODOLOGY.—The Commis-
sion may employ any methodology to as-
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sess such contributions, including a meth-
odology based on— 
‘‘(I) revenues derived from the 
provision of intrastate, interstate, and 
foreign telecommunications services 
and information services by commu-
nications service providers; 
‘‘(II) working telephone numbers 
used by communications service pro-
viders; or 
‘‘(III) any other current or suc-
cessor identifier protocols or connec-
tions to the network used by commu-
nications service providers. 
‘‘(B) USE OF MORE THAN ONE METHOD-
OLOGY.—If no one methodology designated 
under subparagraph (A)(ii) effectuates the prin-
ciples described in this Act, the Commission 
may employ a combination of any such meth-
odologies. 
‘‘(C) 
LOW
VOLUME
EXCEPTION.—The 
Commission shall not materially increase the 
contributions of communications service pro-
viders whose customers typically make a low 
volume of calls on a monthly basis. 
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‘‘(D) DE MINIMIS EXCEPTION.—The Com-
mission may exempt a communications service 
provider from the requirements of this sub-
section if the amount of telecommunications 
services and information services provided by 
such provider are limited to such an extent that 
the level of contributions of such provider to the 
preservation and advancement of universal serv-
ice would be de minimis. 
‘‘(E) GROUP
PLAN
EXCEPTION.—If the 
Commission uses a methodology under subpara-
graph (A)(ii) based in whole or in part on work-
ing telephone numbers, it may provide a dis-
count for additional numbers provided under a 
group or family pricing plan for residential cus-
tomers provided in one bill. 
‘‘(F) DISCRETIONARY AUTHORITY.—If the 
Commission determines that it is in the public 
interest, any provider of a telecommunications 
service or an information service may be re-
quired to contribute to the preservation and ad-
vancement of universal service. 
‘‘(2) REPORTS.— 
‘‘(A) IN GENERAL.—The Commission shall 
establish annual reporting requirements for all 
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entities contributing to universal service support 
mechanisms or receiving universal service sup-
port. 
‘‘(B) NEUTRAL.—The reporting require-
ments shall not impose unnecessary burdens 
and shall be neutral with respect to technology 
and provider. 
‘‘(C) REVIEW.—The Commission shall pe-
riodically review the reporting requirements to 
ensure that such requirements provide adequate 
information to ensure that universal service 
support is being used for the provision, mainte-
nance, and upgrading of the facilities for which 
such support is intended. 
‘‘(3) UNIVERSAL SERVICE SUPPORT CONTRIBU-
TION LIMITS.—In repurposing universal service sup-
port to ensure that all people in the United States 
have access to voice service and high-speed 
broadband service, the Commission shall not unrea-
sonably increase the contribution burden on con-
sumers.’’. 
(b) STUDY OF CONTRIBUTION METHODOLOGIES.— 
(1) IN
GENERAL.—Not later than 270 days 
after the date of enactment of this Act, the Federal 
Communications Commission shall complete a study, 
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including a cost-benefit analysis, of using a system 
based on working telephone numbers or revenues for 
calculating contributions by communications service 
providers to universal service support mechanisms. 
(2) REPORT.—Not later than 1 year after the 
date of enactment of this Act, the Federal Commu-
nications Commission shall transmit to the Com-
mittee on Energy and Commerce of the House of 
Representatives and the Committee on Commerce, 
Science, and Transportation of the Senate a report 
on the study conducted under paragraph (1). 
SEC. 103. UNIVERSAL SERVICE SUPPORT DISTRIBUTION. 
Section 254(e) of the Communications Act of 1934 
(47 U.S.C. 254(e)) is amended to read as follows: 
‘‘(e) DISTRIBUTION AND USE OF UNIVERSAL SERV-
ICE SUPPORT.— 
‘‘(1) IN GENERAL.— 
‘‘(A) ELIGIBILITY.—Only a communica-
tions service provider designated as an eligible 
communications service provider under section 
214(e) shall be eligible to receive specific Fed-
eral universal service support. 
‘‘(B) USE RESTRICTION.—An eligible com-
munications service provider that receives such 
support shall use that support only for the pro-
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vision, maintenance, and upgrading of facilities 
and facilities-based services for which the sup-
port is intended. 
‘‘(C) EXPLICIT
AND
SUFFICIENT.—Any 
such support shall be explicit and sufficient to 
achieve the purposes of this section. 
‘‘(2) USE OF HIGH-COST SUPPORT.—The use of 
high-cost support for all rural, insular, or high cost 
areas— 
‘‘(A) shall be expanded to include high- 
speed broadband service and any other service 
that is determined to be a universal service by 
the Commission under subsection (c); and 
‘‘(B) shall be available to eligible commu-
nications service providers designated under 
section 214(e), but, until such time as the Com-
mission implements the new cost model re-
quired by paragraph (3), an eligible commu-
nications service provider that is also an incum-
bent local exchange carrier may elect to have 
the Commission calculate the amount of high- 
cost support payable to such provider pursuant 
to part 54 of title 47, Code of Federal Regula-
tions, as in effect on the date of enactment of 
the Universal Service Reform Act of 2010. 
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‘‘(3) CALCULATING
HIGH-COST
SUPPORT
FOR 
ELIGIBLE
COMMUNICATIONS
SERVICE
PROVIDERS 
PROVIDING SERVICE IN RURAL, INSULAR, OR HIGH 
COST AREAS.— 
‘‘(A) 
CALCULATING
HIGH-COST
SUP-
PORT.— 
‘‘(i) 
DEVELOPMENT
OF
COST 
MODEL.—Within 2 years after the date of 
enactment of the Universal Service Reform 
Act of 2010, the Commission shall develop 
a new cost model for the provision of high- 
cost support to eligible communications 
service providers to provide universal serv-
ice in rural, insular, and high cost areas, 
taking into account the cost to eligible 
communications service providers of pro-
viding 
voice 
service 
and 
high-speed 
broadband service. 
‘‘(ii) 
INCLUSIVE.—The 
new 
cost 
model shall determine the cost of providing 
voice service and high-speed broadband 
service both on the basis of wire centers 
and study areas. 
‘‘(iii) DATA RATE REQUIREMENTS.— 
The Commission shall require eligible com-
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munications service providers to meet the 
minimum data rate requirements estab-
lished pursuant to subsection (q) no earlier 
than 3 years after support is initially dis-
bursed pursuant to the new cost model. 
‘‘(iv) MAXIMIZATION OF ACCESS.—In 
developing the new cost model, the Com-
mission shall ensure that the new cost 
model results in the maximum number of 
households that do not have access to high- 
speed broadband service as of the date of 
enactment of the Universal Service Reform 
Act of 2010 obtaining such access as 
quickly as possible. 
‘‘(v) RATE
OF
RETURN
REGULA-
TION.—In developing the new cost model, 
the Commission shall develop and imple-
ment a mechanism that maintains rate-of- 
return regulation for the distribution of 
high-cost support to an eligible commu-
nications service provider subject to rate- 
of-return regulation as of the date of en-
actment of the Universal Service Reform 
Act of 2010. 
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‘‘(B) 
CONSIDERATION.—In 
determining 
the appropriate level of high-cost support for el-
igible communications service providers, the 
Commission may consider the net revenues de-
rived by such providers from the provision of 
any services, including telecommunications serv-
ice, high-speed broadband service, and multi- 
channel video programming service that are of-
fered in a service area over infrastructures re-
ceiving high-cost support. 
‘‘(C) MODEL FOR ELIGIBLE COMMUNICA-
TIONS
SERVICE
PROVIDERS
OTHER
THAN 
RURAL
LECS.—The Commission shall require 
all eligible communications service providers 
other than rural local exchange carriers to use 
the wire center results of the new cost model 
within 120 days after the Commission com-
pletes the revisions required by subparagraph 
(A). 
‘‘(D) RURAL LECS.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the Commission shall 
require all rural local exchange carriers to 
use the study area results of the new cost 
model within 120 days after the Commis-
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sion completes the revisions required by 
subparagraph (A). 
‘‘(ii) EXCEPTION.— 
‘‘(I) 
ELECTION.—Within 
120 
days after the Commission completes 
the revisions required by subpara-
graph (A), any rural local exchange 
carrier may make a one-time perma-
nent election to have the Commission 
calculate the amount of high-cost sup-
port payable to such provider based 
on the wire center results of the new 
cost model instead of the study area 
results of the new cost model. 
‘‘(II) REVIEW.—The Commission 
shall review and approve the transi-
tion to the wire center results of the 
new cost model for any such provider 
within 120 days after receiving notice 
of such election. 
‘‘(E) LIMITATION
ON
HIGH-COST
SUP-
PORT.—High-cost support provided to an in-
cumbent local exchange carrier in accordance 
with the new cost model shall be in lieu of any 
Federal high-cost support mechanisms to which 
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the carrier was entitled on the day before the 
date on which the Commission implements the 
new cost model under subparagraph (A)(i). 
‘‘(F) PROCESS FOR REDUCTION OF SUP-
PORT FOR ILECS.— 
‘‘(i) IN GENERAL.— 
‘‘(I) REQUIREMENT.—Within 1 
year after the Commission completes 
the new cost model required by sub-
paragraph (A), the Commission shall 
develop and implement a recurring 
mechanism for reducing or elimi-
nating the high-cost support provided 
to an incumbent local exchange car-
rier in the competitive portions of the 
incumbent local exchange carrier’s 
service areas and shall reduce or 
eliminate high-cost support in such 
areas. 
‘‘(II) 
INVESTMENT
COSTS.— 
When an incumbent local exchange 
carrier has invested to fulfill the re-
quirements 
of 
subparagraphs 
(A) 
through (E) of section 214(e)(1) in 
the portion of a service area that is 
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subsequently found to be competitive, 
the Commission may, in recalculating 
the amount of per-line high-cost sup-
port provided to such carrier for the 
non-competitive portions of such serv-
ice area, consider an appropriate am-
ortization schedule for costs incurred 
to satisfy the buildout requirements in 
the areas that were previously deter-
mined pursuant to subclause (III) not 
to be competitive. 
‘‘(III) DEFINITION.—For pur-
poses of this subparagraph, in a serv-
ice area (as defined in section 214) in 
which the Commission determines 
that at least 75 percent of the house-
holds can purchase wireline voice serv-
ice and wired high-speed broadband 
service from an unsupported, facili-
ties-based, non-incumbent provider, a 
competitive portion of a service area 
shall be that portion of a service area 
where 
households 
can 
purchase 
wireline voice service and wired high- 
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speed broadband service from such 
provider. 
‘‘(ii) RECALCULATION.— 
‘‘(I) IN GENERAL.—Such mecha-
nism shall also include a methodology 
for recalculating, in a service area in 
which the Commission has determined 
that there is a competitive portion, 
the amount of per-line high-cost sup-
port provided to an eligible commu-
nications service provider for the non- 
competitive portions of such service 
area to ensure comparable rates for 
supported services in both the com-
petitive and non-competitive portions 
of the service area. 
‘‘(II) CONSIDERATIONS.—In de-
veloping such methodology, the Com-
mission may consider the net revenues 
derived by such providers from the 
provision of any services, including 
telecommunications 
service, 
high- 
speed broadband service, and multi- 
channel video programming service 
that are offered in a service area over 
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infrastructures 
receiving 
high-cost 
support, except that the total amount 
of high-cost support the incumbent 
local exchange carrier receives for the 
entire service area after applying such 
methodology shall be no greater than 
the total amount of high-cost support 
the incumbent local exchange carrier 
received with respect to the service 
area on the day before such method-
ology was applied. 
‘‘(iii) REQUIREMENTS.—The Commis-
sion shall also ensure that each unsup-
ported, facilities-based non-incumbent pro-
vider in the competitive portion of each 
service area that such non-incumbent pro-
vider is authorized to serve and that is de-
termined by the Commission to be competi-
tive shall— 
‘‘(I) provide basic voice service of 
standard 
quality 
and 
high-speed 
broadband service to any requesting 
residential customer in such area and 
be able to provide such service upon 
request, except that such provider 
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may impose, subject to rules adopted 
by the Commission— 
‘‘(aa) 
reasonable 
require-
ments for creditworthiness, such 
as requiring a security deposit; 
and 
‘‘(bb) a just and reasonable 
line extension charge to provide 
service to any such customer 
whose premises are located be-
yond a standard distance from 
the provider’s infrastructure; 
‘‘(II) provide residential cus-
tomers with the option to subscribe to 
basic voice service on a stand-alone 
basis without any term commitment 
nor any penalty for early termination 
of the subscription; 
‘‘(III) provide toll limitation (as 
defined in section 54.400(d) of title 
47, Code of Federal Regulations, as of 
the date of enactment of the Universal 
Service Reform Act of 2010) if the 
provider offers basic voice service that 
does not include unlimited local and 
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domestic interexchange calling for a 
flat monthly rate; 
‘‘(IV) 
offer 
access 
to 
tele-
communications relay services in ac-
cordance with Commission require-
ments; and 
‘‘(V) comply with Commission re-
quirements regarding— 
‘‘(aa) appropriate notice and 
approval 
before 
discontinuing 
service; 
‘‘(bb) emergency prepared-
ness and network outages; and 
‘‘(cc) the provision of 911 
and E911 service. 
‘‘(iv) LIMITATION.—A State may not 
impose or enforce any carrier-of-last-resort 
requirements on any unsupported, facili-
ties-based non-incumbent provider in a 
service area that the Commission has de-
termined is competitive. 
‘‘(G) TRIBAL LANDS.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
any other provision of this paragraph, the 
Commission shall not reduce high-cost sup-
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port 
for 
tribal 
lands 
under 
section 
54.400(e) of title 47, Code of Federal Reg-
ulations, unless the Commission makes an 
affirmative finding that such reductions 
are in the public interest. 
‘‘(ii) REQUIREMENTS FOR FINDING.— 
In making a finding under clause (i), the 
Commission shall consider whether resi-
dents of such tribal lands have access to 
the services the Commission determines to 
be universal services in accordance with 
subsection (c), including interexchange 
services and advanced telecommunications 
and information services, that are reason-
ably comparable to those services provided 
in urban areas and that are available at 
rates that are reasonably comparable to 
rates charged for similar services in urban 
areas, consistent with subsection (b)(3). 
‘‘(H) HOLD HARMLESS.— 
‘‘(i) IN GENERAL.—The Commission 
shall ensure that, for 1 year after the 
Commission implements the new cost 
model under subparagraph (A)(i), no in-
cumbent local exchange carrier receives 
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less high-cost support in a service area 
than the incumbent local exchange carrier 
was receiving in high-cost support in such 
area on the day before the Commission im-
plements such new cost model. 
‘‘(ii) DETERMINATION.—The Commis-
sion shall determine the difference between 
the amount an incumbent local exchange 
carrier was receiving in high-cost support 
on the day before the Commission imple-
ments such new cost model and the 
amount that such incumbent local ex-
change carrier would receive after the 
Commission implements such new cost 
model and shall, beginning in the fifth 
quarter that begins after the Commission 
implements such new cost model, reduce 
the amount of such difference in equal in-
crements over a 5-year period such that 
the amount of the difference has been re-
duced to zero at the end of such period.’’. 
SEC. 104. ELIGIBLE RECIPIENTS OF UNIVERSAL SERVICE 
SUPPORT. 
(a) AMENDMENT.—Section 214(e) of the Commu-
nications Act of 1934 (47 U.S.C. 214(e)) is amended— 
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(1) in paragraph (1)— 
(A) by striking ‘‘ELIGIBLE TELECOMMUNI-
CATIONS CARRIERS.—A common carrier’’ and 
all that follows through ‘‘paragraph (2), (3), or 
(6)’’ and inserting the following: ‘‘ELIGIBLE 
COMMUNICATIONS SERVICE PROVIDER.—A com-
munications service provider designated as an 
eligible communications service provider under 
paragraph (2), (3), (6), or (8)’’; 
(B) by striking ‘‘throughout the service 
area for which’’ and inserting ‘‘throughout the 
portions of a service area that the Commission 
has not determined are competitive, where the 
eligible communications service provider accepts 
support, and for which’’; 
(C) in subparagraph (A), 
(i) by striking ‘‘services that are’’ and 
inserting ‘‘services, except for high-speed 
broadband service, that are’’; and 
(ii) by striking ‘‘; and’’ and inserting 
the following: ‘‘and adhere to the State 
carrier-of-last-resort requirements that are 
imposed on incumbent local exchange car-
riers serving such service area;’’; 
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(D) in subparagraph (B), by striking the 
period at the end and inserting the following: 
‘‘throughout the service area and advertise the 
availability of life-line and link-up services in a 
manner reasonably designed to reach those like-
ly to qualify for those services;’’; and 
(E) by adding at the end the following: 
‘‘(C) demonstrate the ability to remain 
functional in emergency situations; 
‘‘(D) comply with applicable State and 
Federal consumer protection and service quality 
standards; and 
‘‘(E) notwithstanding subparagraph (A), in 
an area where an eligible communications serv-
ice provider elects to receive high-cost support 
and high-speed broadband service is not other-
wise available, meet the basic requirements for 
the deployment of high-speed broadband service 
and provide high-speed broadband service either 
itself or through resale of another provider’s 
services, including, for purposes of this sub-
paragraph 
only, 
the 
resale 
of 
satellite 
broadband service, except that the Commission 
shall establish a process in which— 
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‘‘(i) a determination can be made to 
waive the requirements of this subpara-
graph for 3 years upon a communications 
service provider’s application covering all 
or part of such communications service 
provider’s service area demonstrating that 
the deployment and provision of high-speed 
broadband service is not technically fea-
sible or would materially impair the com-
munications service provider’s ability to 
continue to provide local exchange service 
throughout its service area, except that a 
waiver shall be deemed automatically 
granted under this clause for a commu-
nications service provider demonstrating 
that the cost per line of deploying and pro-
viding high-speed broadband service to 
unserved high cost portions of its service 
area is at least 3 times the national aver-
age cost per line of providing high-speed 
broadband service or demonstrating that 
there is insufficient satellite capacity to 
meet the requirements to provide high- 
speed broadband service, subject to the re-
newal provisions set forth in clause (ii); 
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‘‘(ii) the communications service pro-
vider may seek renewal of such waiver 
every 3 years for as long as the deploy-
ment 
and 
provision 
of 
high-speed 
broadband service is not technically fea-
sible or would materially impair the com-
munications service provider’s ability to 
continue to provide local exchange service 
throughout its service area or the cost per 
line of deploying and providing high-speed 
broadband service to unserved high cost 
portions of its service area remains at least 
3 times the national average cost per line 
of providing high-speed broadband service 
or there continues to be insufficient sat-
ellite capacity to meet the requirements to 
provide high-speed broadband service; and 
‘‘(iii) any application of a communica-
tions service provider for a waiver pursu-
ant to clause (i) on which the Commission 
has not taken final action within 60 days 
after the date of submission to the Com-
mission shall be deemed granted.’’; 
(2) by amending paragraphs (2) through (4) to 
read as follows: 
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‘‘(2) ELIGIBILITY CRITERIA.— 
‘‘(A) IN GENERAL.—In addition to the cri-
teria specified in paragraph (1), the Commis-
sion shall establish such additional eligibility 
criteria for the receipt of universal service sup-
port by eligible communications service pro-
viders as it deems necessary and in the public 
interest. The criteria established in paragraph 
(1) and the criteria established by the Commis-
sion pursuant to this paragraph shall be used 
by State commissions in determining which pro-
viders shall be designated as eligible recipients 
of universal service support for the purpose of 
paragraph (3). 
‘‘(B) 
ADDITIONAL
DESIGNATION.—The 
Commission may establish a life-line service 
provider designation that is not subject to the 
eligibility requirements in paragraph (1) or the 
eligibility criteria established in subparagraph 
(A). 
‘‘(3) DESIGNATION OF ELIGIBLE RECIPIENTS.— 
A State commission shall, upon its own motion or 
upon request, designate as an eligible recipient of 
universal service support only those providers meet-
ing the requirements of paragraphs (1) and (2). 
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‘‘(4) GRANDFATHER PROVISION.— 
‘‘(A) 
ELIGIBILITY
REQUIREMENTS.—A 
communications service provider who was a re-
cipient of high-cost support in any service area 
prior to the date of enactment of the Universal 
Service Reform Act of 2010 shall, for those 
areas where high-cost support provided by sec-
tion 254(e)(3) is available and the communica-
tions service provider elects to receive such sup-
port, meet the eligibility requirements for an el-
igible communications service provider— 
‘‘(i) as described in paragraphs (1)(A) 
through (D), within 1 year after the date 
of enactment of the Universal Service Re-
form Act of 2010; and 
‘‘(ii) 
as 
described 
in 
paragraph 
(1)(E), within 5 years after such date of 
enactment. 
‘‘(B) 
FAILURE
TO
MEET
REQUIRE-
MENTS.—Failure of such recipient to maintain 
and meet the eligibility requirements within the 
period required by subparagraph (A) shall re-
quire the automatic termination of specific Fed-
eral universal service support to such recipient, 
and such recipient shall simultaneously be re-
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lieved of its obligation under this section, except 
as described in subparagraph (E). 
‘‘(C) PARTIAL COMPLIANCE.— 
‘‘(i) IN GENERAL.—Such recipient is 
permitted to maintain and meet the eligi-
bility requirements in part of its service 
territory and is eligible to continue to re-
ceive specific Federal universal service sup-
port in those service areas within its serv-
ice territory in which it meets the eligibility 
requirements. 
‘‘(ii) DEFINITION.—For the purposes 
of clause (i), the term ‘service territory’ 
means all of the service areas in which the 
communications service provider is offer-
ing, or is designated by the Commission or 
by a State commission to offer, services 
that are supported by Federal universal 
service support mechanisms. 
‘‘(D) RULE OF CONSTRUCTION.—Nothing 
in this paragraph shall be construed to prohibit 
such recipient from obtaining a waiver under 
paragraph (1)(E). 
‘‘(E) LIFE-LINE
AND
LINK-UP
EXCEP-
TION.—A recipient of universal service support 
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in any service area prior to the date of enact-
ment of the Universal Service Reform Act of 
2010 that relinquishes its eligible telecommuni-
cations carrier or eligible communications serv-
ice provider designation shall continue to offer 
and receive support for providing life-line and 
link-up service to its subscribers throughout its 
service area unless another provider is des-
ignated as an eligible communications service 
provider or a life-line service provider in all or 
part of that service area.’’; 
(3) in paragraph (6)— 
(A) in the heading, by striking ‘‘COMMON 
CARRIERS’’ and inserting ‘‘COMMUNICATIONS 
SERVICE PROVIDERS’’; 
(B) by striking ‘‘common carrier’’ each 
place it appears and inserting ‘‘communications 
service provider’’; 
(C) by striking ‘‘eligible telecommuni-
cations carrier’’ each place it appears and in-
serting ‘‘eligible communications service pro-
vider’’; and 
(D) by striking ‘‘carrier’’ and inserting 
‘‘provider’’; and 
(4) by adding at the end the following: 
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‘‘(7) AMOUNT
OF
SPECIFIC
FEDERAL
UNI-
VERSAL SERVICE SUPPORT AVAILABLE TO MOBILE 
WIRELESS COMMUNICATIONS SERVICE PROVIDERS.— 
‘‘(A) IN GENERAL.—The Commission shall 
establish the amount of high-cost support to be 
distributed to all mobile wireless communica-
tions service providers designated as eligible 
communications service providers under this 
subsection through a competitive bidding proc-
ess established by the Commission. 
‘‘(B) LIMITATION.—The amount of such 
high-cost support available to be distributed an-
nually to mobile wireless communications serv-
ice providers shall not exceed the amount of 
high-cost support received by all mobile wireless 
communications service providers for rural, in-
sular, or high cost areas in the last full cal-
endar year immediately preceding the date of 
enactment of the Universal Service Reform Act 
of 2010. 
‘‘(8) COMPETITIVE
BIDDING.—Within 1 year 
after the date of enactment of the Universal Service 
Reform Act of 2010, the Commission shall adopt a 
competitive bidding process for mobile wireless com-
munications service providers to provide service to 
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