Universal Service

Problem Phone access not reaching all Americans Funding mechanisms changing Information Age creates new concerns for “unconnected” Americans

Universal Service 100 year old program Communication important to America –commerce –mobility –emergency

Phone Adoption first – male businessmen second – urban females third – rural areas, but then declined between the wars steady increase after WWII, until 1996

Who Are the Phoneless? About 9 million Americans... 50% of households headed by single women with small children at or below the poverty line 16% to 18% percent of Black and Hispanic households 10% of renters 40% of Americans living in boarding houses or hotels 21% of Americans living in public housing.

Why Phoneless Urban – unpredictable long distance bills Rural – lack of adequate technology Mystery element – culture, occupation, household size???

Universal Service Funding Before 1996 cross-subsidy –from business to residential price averaging –from rural to urban

Telecom Act 1996 Eliminates old funding mechanisms Allows ‘universal service funds’ –schools, hospitals Establishes evolving standard of service –based on common use and availability