said by DrTCP:
There is very little oversight by FCC on how the funds are used. It has been claimed that while Telcos blame federal government for it they make good money from the funds collected.
EXACTLY.
This is mega profitable handout program to Telcos.
It works like this.
FCC: "You must provide service BUT you can pass the costs back to your customers if you wish."
Telcos: "Woohoo! Let's give this school here a T1. Let's figure out how much profit er, costs will be. Ok, it will cost us ummmm... what number sounds goood... 10 million dollars! Yes, perfect. 10 million, a nice easy, round number. Let's just 'upgrade' our Consumer's bill with this 10 million USF charge. Yeah baby!"
Telco: "Dear consumer, much wringing on hands, hanging of heads, tales of woe, your Government has once again foisted a new charge onto thee, there's nothing we can do, we're just 'passing on the costs'. Here's your new USF fee!
Telcos: WOOOHOOO!!!! $$$$$ WE'RE IN THE MONEY, WE'RE IN THE MONEY $$$$$ Profits soar! This Government handout stuff rocks! Money, Money, Money.... MONEY! All ours Muhahahha!
- - -
This is a simplied example of pretty much exactly how "Universal Service" and the USF fee is working out.
A big, fat, RIP-OFF SCAM.
It's a simplified example of something, I'm just not sure what.