Proposed Changes to USF

Regulators are working on proposals that would change the way the old Universal Service Fund tax is dispersed. The changes propsed center around the distribution of the funds collected. Today all customers pay into this universal service fund and the money is then redistributed to smaller telcos in rural areas.

Porposed Changes:

1) Allowing Broadband and other smaller Telcos a portion of the funds

2) Creating a seperate fund for wireless operators

3) Changing to distribution based on cost and share of business not just equal for everybody and also giving funds to company who proposes the lowest bid for offering services to promote a more competitive environment.

The changes will most likely be open to more discussion and possible alterations but should go into effect sometime in the coming year or so!