SC Telco Alliance

Issues

USF

The SC Telco Alliance helps South Carolinians stay connected to one another at work, at school, at home and at play. For over a decade, members of the Alliance have used funding received through the state Universal Service fund (USF) to provide South Carolinians with affordable access to the latest telecommunications services – no matter where they live.  Through the USF fund, members of the SC Telco Alliance have helped ensure that all South Carolinians remain connected to each other and the world.

What is the Universal Service Fund?

Early in the 1996 South Carolina legislative session, a state telecommunications bill was introduced in the General Assembly. The legislation as written, passed and signed into law by the governor, established a state universal service funding (USF) mechanism and protected universal service in South Carolina.

The state legislation defines universal service as “the providing of basic local exchange service, at affordable rates, upon reasonable request, to all residential and single-line business customers within a defined service area”. Basic local exchange telephone services includes “access to basic voice grade local service with touchtone, access to available emergency services and directory assistance, the capability to access interconnecting carriers, relay services, access to operator services and one annual local directory listing (white pages or equivalent)”.

Why is the Universal Service Fund Important?

Universal service funding is the only viable way to guarantee that all South Carolinians, in both urban and rural areas, have access to affordable basic telephone service. Without universal service funding at both the interstate and intrastate levels, residential local exchange service rates would dramaticially increase for many South Carolinians, making basic local exchange service a luxury that many could not afford.  Consumers in high-cost areas would not continue to receive the benefits of innovative services, making South Carolina a state of “haves” and “have-nots.”

Affordable telecom service in South Carolina would not be possible without the support provided through the state USF. The USF does not provide profit; rather it allows SC Telco Alliance members to recover their costs for providing service in high-cost areas. Without the state USF, in high-cost service areas, South Carolinians would have to pay an average of $110.78 more per year for basic telecom services and some areas could potentially not have access to telephone service at all.