What is FUSF?

To help promote telecommunications service nationwide, the Federal Communications Commission (FCC) developed the Federal Universal Service Fund (FUSF). There are four components to the FUSF.

• Low-Income - Provides telephone service discounts to consumers with qualifying low incomes.
• High-Cost - Provides financial support to companies that provide telecommunications services in areas of America where the cost of providing service is high.
• Schools and Libraries - Helps to ensure that the nation's classrooms and libraries receive access to the vast array of educational resources that are accessible through the telecommunications network.
• Rural Health Care - Links health care providers located in rural areas to urban medical centers so that patients living in rural America will have access to the same advanced diagnostic and other medical services that are enjoyed in urban communities.

All telecommunications companies that provide service between states must contribute to the FUSF. Telecommunications companies must pay a specific percentage of their Interstate and International revenues into the FUSF. The percentage is called the Contribution Factor. This percentage is adjusted each quarter.