Rural High Cost Areas Program

The High Cost Program offers support to eligible telecommunications companies who deliver basic "core" telecommunications services to customers in high cost regions of the country.

High Cost Loop Support covers part of the cost for telephone lines in service areas where the cost for lines exceeds 115% of the national average.

Local Switching Support provides assistance to local telephone carriers that serve fewer than 50,000 customers. This assistance enables the carrier to help recover the higher costs associated with providing service to fewer customers, thus keeping customer rates lower than they otherwise would be.

Long Term Support allows certain smaller local telephone companies serving high cost areas to offer lower rates to long-distance telephone service providers. This enables customers in high cost areas to obtain inter-exchange services for prices comparable to urban areas.

Interstate Access Support enables larger telephone companies that provide services in high cost areas to reduce long distance charges for their customers.

High Cost Model Support provides support to non-rural telephone service providers. If the forward-looking costs of constructing and operating the telephone network in a state is over 135% of the national average, then the company receives support to keep the consumer's cost comparable in all areas of the nation.

More Information

Universal Service Administrative Company (USAC)- High Cost

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Last reviewed/updated on 8/29/2003.