FCC Reminds ETCs of High-Cost Support Requirements

The Federal Communications Commission reminds all eligible telecommunications carriers (ETCs) that receive support from the Universal Service Fund's s high-cost mechanisms (whether legacy high-cost program support or Connect America Fund support) of their obligations to use such support only for its intended purposes of maintaining and extending communications service to rural, high-cost areas of the nation. Expenditure of legacy high-cost or Connect America support for any other purpose is misuse and may subject the recipient to recovery of funding, suspension of funding, enforcement action by the Enforcement Bureau pursuant to the Communications Act of 1934 or our rules, and/or prosecution under the False Claims Act.

In a joint statement, FCC Commissioners Mignon Clyburn and Michael O'Rielly said, "Today’s public notice helps ensure that scarce consumer dollars are targeted to only costs directly related to deploying and providing service...To be clear, the vast number of providers are good actors and would never take advantage of the system, but there are unfortunate examples to the contrary and spending on outrageous items has occurred. We therefore support today’s public notice to remind all providers of expenditures that should not be supported by universal service."

[WC Docket No. 10-90, WC Docket No. 14-58]


FCC Reminds ETCs of High-Cost Support Requirements FCC Commissioners Clyburn and O'Rielly Joint Statement (Clyburn and O'Rielly Joint Statemenet) FCC Commissioner Pai Statement (Pai Statement)