Universal Service
The federal government (and many states) provide a system of subsidized support to high-cost rural areas and low-income Americans to maintain affordable, quality telephone service, and discounts to schools, libraries, and rural health care providers for inside wiring and Internet connections (the "E-rate" ). Telecommunications carriers contribute to this fund which is then disbursed to rural carriers, Lifeline low-income households, and as discounts to schools, libraries, and rural health care providers.
At the federal level, the Telecommunications Act of 1996 establishes as national policy the provision of affordable, quality service to all Americans and the rapid deployment of advanced services such as high-speed Internet access to all Americans. The 1996 Act also requires that all implicit subsidies currently in the Universal Service Fund, the telephone rate structure, and access charge system must be made explicit.
