Keep in mind that large providers like ATT and Verizon do not get USF funds.
AT&T and Verizon most certainly do get USF funds for their rural lines but it's a lower amount per line. Also when Verizon spins off their rural lines the subsidies stay the same. Fairpoint would be in much better shape if it could collect the same USF subsidies on the former Verizon lines as it does on its other lines.