What types of service providers are subject to contribution requirements?
Under the FCC’s broad contribution mandate, all providers of interstate telecommunications services are subject to USF contribution requirements. This includes all local exchange carriers (“LECs”), long-distance carriers (“IXCs”), international carriers, wireless carriers, and, most recently, Interconnected VoIP Service Providers (see Interconnected VoIP for more information). According to the FCC, a contribution eligible service provider’s contributions are assessed as a percentage of their interstate and international end-user telecommunications revenues. Currently, wireline interexchange companies contribute 63% of the universal service fund, with the remainder coming from local exchange companies and wireless companies. Providers currently decide for themselves whether, how, and how much to recover these costs from their customers; most recover USF contribution costs through line items on customer telephone bills. Before providing telecommunications service and recouping USF contri
