Universal Traffic Service: Definition and Evolution
Universal service is a foundational principle ensuring access to communications services for all Americans. Rooted in the Communications Act of 1934, it has evolved from basic telephone service to encompass modern necessities like high-speed internet. The Telecommunications Act of 1996 further broadened this goal, emphasizing access to both telecommunications and advanced services at reasonable rates, particularly for those in rural, insular, and low-income areas, as well as schools, libraries, and rural healthcare facilities.
The Universal Service Fund (USF)
The Universal Service Fund (USF) is the financial mechanism that supports the principle of universal service. It consists of contributions from telecommunications providers, including wireline, wireless, and interconnected Voice over Internet Protocol (VoIP) providers, based on an assessment of their interstate and international end-user revenues. The Universal Service Administrative Company (USAC) manages the four programs under the direction of the FCC, collecting and disbursing funds.
Four Pillars of Universal Service
The FCC has established four key programs within the USF to achieve its universal service goals:
- Connect America Fund (CAF): Formerly known as High-Cost Support, CAF provides support to qualifying telephone companies serving high-cost areas, ensuring residents have access to comparable service at reasonable rates.
- Lifeline: This program assists low-income consumers with monthly telephone charges, making service more affordable. It also includes initiatives to expand phone service for residents of Tribal lands.
- Schools and Libraries (E-rate): The E-rate program provides telecommunication services, internet access, and internal connections to eligible schools and libraries.
- Rural Health Care: This program enables rural health care providers to access telecommunications services at rates similar to their urban counterparts, facilitating telehealth services and subsidizing internet access.
Historical Context
The concept of universal service emerged alongside the establishment of the FCC through the Communications Act of 1934. Initially, AT&T operated as a monopoly in exchange for government regulation of price and service quality. Funding for universal service was derived from access charges paid by long-distance carriers to local exchange companies.
The Telecommunications Act of 1996 marked a significant turning point, opening local markets to competition and explicitly defining principles for universal service policy. It expanded the pool of contributors to the USF to include all telecommunications carriers and led to the creation of USAC.
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Modernizing Universal Service for the 21st Century
The FCC is actively reforming and modernizing its universal service programs to promote investment in and access to broadband and voice services. These efforts prioritize targeted support for broadband expansion and adoption, as well as improved efficiency and waste reduction.
In early 2009, Congress directed the FCC to develop a National Broadband Plan to ensure broadband access for all Americans. Consistent with this plan, the FCC issued a Notice of Proposed Rulemaking in February 2011 to reform the High-Cost program and intercarrier compensation systems.
The rulemaking process was guided by four key principles:
- Modernize USF and ICC for Broadband: Make affordable broadband available to all Americans and accelerate the transition from circuit-switched to IP networks.
- Fiscal Responsibility: Control the size of USF during the transition to broadband support, reducing waste and inefficiency.
- Accountability: Require accountability from companies receiving support to ensure responsible use of public investments.
- Incentive-Based Policies: Transition to policies that encourage technologies and services that maximize program value and consumer benefits.
In October 2011, the Commission adopted its first rulemaking decision, informally called the “USF/ICC Transformation Order,” with the following goals:
- Preserve and advance voice service
- Ensure universal availability of voice and broadband to homes, businesses, and community anchor institutions
- Ensure the availability of mobile voice and broadband where Americans live, work, or travel
- Ensure reasonably comparable rates for broadband and voice service
- Minimize the universal contribution burden on consumers and businesses
Universal Traffic Management (UTM)
Efforts to establish a UAS traffic management (UTM) system for drones have been underway for years. A reliable UTM system will create opportunities for commercial operators related to operating beyond visual line of sight (BVLOS) and flying over people, and will also change the paradigm around urban air mobility logistics.
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Mariah Scott, President at Skyward, A Verizon company, explained that UTM should be thought of as a system of systems, which will see the term come to mean a “Universal Traffic Management”. This transition would facilitate an environment that enables safe sharing of the airspace for aircraft that range from commercial airliners to package delivery drones to aerial taxis.
The Evolution to Universal Traffic Management
The evolution to Universal Traffic Management is an extension of the “system of systems” thinking that NASA, GUTMA and others have promoted in describing UAS Traffic Management. Traffic management systems that allow safe access and deconfliction should be universal, a comprehensive distributed network.
Remote Identification (Remote ID)
Applying a remote ID rule to all UAS operating in the national airspace is a fundamental building block to traffic management systems. We can’t manage the airspace if we don’t know who is operating in it. Remote ID for all drones is equivalent to license plates on vehicles.
Recent FCC Actions and Public Notices
The FCC and its Wireline Competition Bureau (WCB) regularly issue orders and public notices related to the USF, addressing issues such as:
- Requests for review and waiver of USAC decisions
- Streamlined resolution of reimbursement program requests
- Completion deadlines for connected care participants
- Eligible locations lists for enhanced alternative Connect America Model mechanisms
- Cybersecurity pilot programs for schools and libraries
- Provider defaults in RDOF service areas
- Spending report deadlines for reimbursement programs
- Guidance for RDOF and CAF Phase II support recipients
- Pauses on Lifeline voice phase-out and mobile data changes
- Filing deadlines for eligible telecommunications carriers (ETCs)
- Changes to FCC forms and instructions
- Availability of unused funds for the Rural Health Care (RHC) Program
- Maximum partial reimbursement amounts for Affordable Connectivity Program (ACP) benefits
These actions reflect the FCC's ongoing efforts to adapt and refine universal service policies to meet the evolving needs of the communications landscape.
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