‘‘(3) SPECIAL
SERVICES.—In addition to the 
services included in the definition of universal serv-
ice under paragraph (1), the Commission— 
‘‘(A) shall designate broadband service (in 
this subparagraph meaning evolving, high- 
speed, mass-market retail service by wire or 
radio that provides the capability to transmit 
data to and receive data from all or substan-
tially all Internet endpoints) as supported by 
the Federal universal service support mecha-
nisms; and 
‘‘(B) may designate additional services for 
such support mechanisms for schools, libraries, 
and health care providers for the purposes of 
subsection (h).’’. 
(b) FEDERAL UNIVERSAL SERVICE SUPPORT.—Sec-
tion 254(e) of the Communications Act of 1934 (47 
U.S.C. 254(e)) is amended to read as follows: 
‘‘(e) UNIVERSAL SERVICE SUPPORT.— 
‘‘(1) Except as provided in paragraph (2), after 
the date on which Commission regulations imple-
menting this section take effect, only an eligible tele-
communications carrier designated under section 
214(e) shall be eligible to receive specific Federal 
universal service support. 
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‘‘(2) A provider of broadband service, and any 
affiliate thereof, that has not been designated as an 
eligible telecommunications carrier under section 
214(e) of this title shall be eligible to receive specific 
Federal universal service support for the provision of 
broadband service, if such provider or affiliate meets 
the applicable Commission legal, financial, and tech-
nical requirements for receiving such support. 
‘‘(3) In assessing a broadband service provider’s 
financial qualifications under paragraph (2), the 
Commission shall allow such provider to choose to 
demonstrate its financial viability and security 
through either— 
‘‘(A) a letter of credit issued by a bank ac-
ceptable to the Commission; 
‘‘(B) a performance bond; 
‘‘(C) credit rating issued by national rat-
ings agencies; 
‘‘(D) its Form 10–K most recently filed 
with the U.S. Securities and Exchange Commis-
sion, provided that such Form 10–K shows the 
ability of a publicly traded applicant to meet fi-
nancial eligibility requirements, such as by ref-
erence to an applicant’s debt/EBITDA ratio, 
cash flow, or other criteria; or 
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‘‘(E) financial records audited by an unaf-
filiated, qualified firm covering the preceding 
two fiscal years showing the ability to meet fi-
nancial eligibility requirements. 
‘‘(4) A recipient of support pursuant to para-
graphs (1) and (2) shall use that support only for 
the provision, maintenance, and upgrading of facili-
ties and services for which the support is intended. 
Any such support should be explicit and sufficient to 
achieve the purposes of this section. 
‘‘(5) A provider of broadband service, and any 
affiliate thereof, that receives specific Federal uni-
versal service support pursuant to this subsection 
shall be subject to any deployment, public interest, 
or reporting requirement established under part 54 
of title 47, Code of Federal Regulations, for eligible 
communications carriers that receive such support.’’. 
SEC. 3. UNIVERSAL SERVICE OBLIGATIONS. 
Providers will comply with all applicable Commission 
requirements as set forth in part 54 of title 47, Code of 
Federal Regulations. 
Æ 
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