SUMMARY OF INTERSTATE ACCESS UNIVERSAL
 SERVICE SUPPORT MECHANISM



Purpose of the Support:

? This Order identifies $650 million of annual universal service support that is implicit 
in our access charge regime, and establishes an explicit universal service support 
mechanism to replace such implicit support.

? This is a new universal service mechanism (i.e., separate from the current high cost 
universal service mechanism).

? Interstate access universal service support is designed to be sufficient to ensure that 
consumers in all regions of the nation have access to telecommunications services at 
affordable and reasonably comparable rates. 

? Creation of an interstate access universal service support mechanism is a necessary 
corollary to the reductions made to interstate access charges.


Size of the fund:

? Support is fixed at an annual amount of $650 million.

? $650 million is within the range of estimates of the amount of universal service 
support implicit in interstate access charges.


Methodology for distributing support:

? Support is targeted to the density zones and study areas that have the greatest need for 
it based on the difference between permitted common line revenues and a SLC 
benchmark based on the new SLC caps.

Portability:

? Support is provided on a portable, per-line basis.  If a competitor serves a customer in 
an area receiving support, the competitor will get the per-line support for that 
customer.

? Support is available on a competitively neutral basis to any eligible 
telecommunications carrier serving a supported customer, regardless of the 
technology used by that carrier.


Collection of interstate access universal service support:

? The amount required to fund the interstate access universal service mechanism will be 
added to the amounts collected for the other universal service mechanisms and added 
to the quarterly contribution factor.

? The increase in universal service support will be collected from all  
telecommunications carriers.

? As of July 1, 2000, price cap LECs will establish a separate rate element (i.e., line 
item) to recover all contributions to the universal service support mechanisms.


Additional Lifeline Support:

? Support under the Commission's universal service Lifeline Assistance program for 
low-income consumers is increased to cover the increase in the residential SLC.

? Lifeline support will increase to approximately $60 million in the first year of the 
plan and will gradually increase to approximately $125 million in the fifth year of the 
plan.