Universal Service

On May 8, 1997, we adopted the Universal Service Report and Order (Order) implementing section 254 of the Communications Act of 1934, as amended (the Act). We reconsider on our own motion several issues with respect to school and library contracts, the school and library discount matrix, the method used to calculate the limit placed on the amount of corporate operations expense, the source of support and administration of support for high loop costs, and the new monitoring program and Monitoring Report. In addition, we reiterate our holdings in the Order with respect to the Commission's authority to assess universal service contributions from intrastate and interstate revenues, the Commission's authority to require any carrier to seek state authority to recover a share of its contribution through intrastate rates, section 254(k), and the Commission's review of decisions by state commissions not to waive the ``no-disconnect'' requirement for the Lifeline program. The intended effect of these rules is to implement fully the universal service provisions of the Act.