Oregon Universal Service Fund

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Basic Overview of the OUSF. Passed by the 1999 Legislative Assembly as SB 622 (ORS 759.425)

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Oregon Universal Service Fund

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1. Oregon Universal Service Fund Brant Wolf, EVP Oregon Telecommunications Association

2. Basic Overview of the OUSF Passed by the 1999 Legislative Assembly as SB 622 (ORS 759.425) The statute requires the Commission to establish and implement a competitively neutral and nondiscriminatory OUSF to ensure that basic telephone service is available at reasonable and affordable rates. (OPUC order 03-082) For the non-rural carriers, implemented by OPUC in 2000 (00-312) For the rural carriers, implemented by OPUC in 2003 (03-312) and subsequent MOU

3. OUSF Basics Who Contributes? customers of wireline telecommunications companies, ILEC & CLEC (Comcast contributes but claims they are not obligated to do so) 290 certified Telecom. Service Providers (TSPs) Current Surcharge Rate 6.55% of intrastate retail services

4. OUSF Basics Who does not contribute? everyone else: wireless, MagicJack, etc. The natural tendency of new carriers is to provide service only for the most profitable services, leaving high-cost services to be provided by incumbent carriers. (03-082)

5. OUSF Basics Who receives OUSF support? 25 Eligible Telecommunications Carriers: Non-rural; Rural and CLEC. Not all RLECs receive OUSF support Per line, per month support amount

6. Who Receives, cont. Support amount varies from pretty moderate to pretty high on a per line basis Support is calculated according to OPUC rule and is designed specifically to avoid any windfall.

7. OUSF Basics OUSF Support is to be used to: Provide single party, voice grade service that provides access to long distance, TRS, directory assistance, 9-1-1, etc. Does not include call waiting, caller ID, high speed internet access. (OAR 860-032-0190)

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