FCC to Examine USAC

In its August meeting, the Federal Communications Commission adopted a Notice of Proposed Rulemaking titled Maximizing Efficiencies in Universal Service Administration Company that looks at changing the rules governing USAC, the Universal Service Administration. USAC is a non-profit corporation that was formed by the FCC after passage of the Telecommunications Act of 1996, which created the Universal Service Fund. The FCC decided to create USAC to administer the fund in order to shield the day-to-day operations of the USF from politics and the changes that always come after a change in administration. USAC has a single purpose, which is to operate the Universal Service Fund under guidelines established by the FCC and approved by the FCC. The Universal Service Fund has been somewhat controversial since its formation. However, most of the controversy comes from the direction that the FCC gives to USAC.